Unit quiz: Negotiating terms, distress conversations and accountable decisions

Check understanding, separately from reading

5 questions · 80% to pass · no timer. This quiz checks the lessons in this unit. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

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Question 1

Two owners each hold 40 percent of a business and both sign an unlimited, joint and several guarantee on a $60,000 advance. At week twenty the remaining balance is $11,000 and the business stops paying. What is each owner's exposure?Either owner can be pursued for the full remaining balance under a joint and several guarantee. How they divide it between themselves is a separate matter that the funder is not obliged to referee.Each owner is exposed to $5,500 because two guarantors split the obligation equally, which is what joint and several means in practice.

Question 2

At week fourteen a merchant has paid $36,400 of a $52,000 total repayment amount with payments of $2,600 a week, so $15,600 remains. A renewal advances $52,000, pays off the $15,600, leaves $36,400 and carries a total of $68,640. Finishing the old obligation and taking a fresh $30,000 at a factor of 1.32 totals $55,200. What does the comparison show?The renewal is cheaper because the weekly payment falls from $2,600 to $2,860 spread over more weeks, which lowers the burden on the merchant's cash flow.The renewal takes $13,440 more, or 24.35 percent, from the merchant's account for the same need, in exchange for the money arriving immediately rather than in six weeks.

Question 3

A merchant is three weekly payments of $2,450 behind, with a $250 recorded fee, and $22,300 remains after the cure. A forbearance of eight weeks at $1,150 is agreed. What is the rest of the schedule, and what must be documented?The cure is $7,600; the forbearance collects $9,200 and leaves $13,100, which takes six more weeks at the restored $2,450 with a smaller final payment, extending the schedule from 9.10 weeks to fourteen. The review record, the cause of the shortfall, the revised amounts, the end date and the consequence of a missed payment all belong in writing.The cure is $7,350; the forbearance collects $9,200 and leaves $13,100, which is 5.35 weeks, so five more payments of $2,450 close the file with no final adjustment.

Question 4

A broker can place $80,000 at three percent commission on a transaction with a dollar cost of $28,000, or $45,000 at one and a half percent with a dollar cost of $9,000. Compensation is $2,400 against $675. What must the recommendation contain?The compensation difference is a private commercial matter, so it need only be disclosed if the merchant asks which option pays the broker more.Both options priced in dollars and dates, the compensation on each stated explicitly, the needs analysis that identifies which amount is required, the option recommended and why, and the conditions that would change it.

Question 5

A merchant is declined. What makes that decline defensible rather than a brush-off?Specific principal reasons tied to the analysis, the arithmetic behind them, the conditions and evidence that would change the answer, a review date, and referral options such as free small-business advisers or a certified development company.A statement that the file does not meet internal criteria at this time, with an invitation to reapply later, because internal standards are the funder's own commercial judgement and need not be explained.

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