What Every Collector Should Know, Part 1

30 Questions | Total Attempts: 90

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What Every Collector Should Know, Part 1 - Quiz

To test collectors retention of information provided in the handout "What Every Collector Should Know, Part 1"


Questions and Answers
  • 1. 
    What type or types of business ownership can all personal and business assets be attached to satisfy the debts of the business?
    • A. 

      Corporation and Limited Liability Corporation

    • B. 

      Sole Proprietorship and General Partnership

    • C. 

      Limited Partners

    • D. 

      Any of the above

  • 2. 
    In a limited partnership, limited partners are liable for debt incurred by the business just like in a general partnership.  True of False?
    • A. 

      True

    • B. 

      False

  • 3. 
    A corporation can only be publicly held. True or False?
    • A. 

      True

    • B. 

      False

  • 4. 
    In a privately owned corporation...
    • A. 

      Creditors can look to officers to satisfy the corporations debt

    • B. 

      Creditors can only look to the to the corporation for settlement of their claim

    • C. 

      Creditors can look to officers personally to satisfy the corporations debts is they signed a personal guaranty.

    • D. 

      Both B and C

  • 5. 
    When contacting debtor company ABC Distributing looking for Joe King, the person you speak with advises you that business is no longer in business and the assets have been sold to the new company also called ABC Distributing and they have no liability for your debt.  What should you do next?
    • A. 

      Call them a liar and demand they pay this debt.

    • B. 

      Thank them, then submit the account for closure as OOB.

    • C. 

      Ask who the new principal is and ask for a copy of the sales contract.

    • D. 

      None of the above

  • 6. 
    Bulk Transfer is defined as any trans­fer or sale in bulk (51% or more of the company's assets) and not in the ordi­nary course of the seller's business of a major part of the materials, supplies, merchandise or other inventory. True or False?
    • A. 

      True

    • B. 

      False

  • 7. 
    There are specific requirements in the Fraudulent Transaction Act of the UCC covering the sale of bulk assets.  Which of the following is one of them?
    • A. 

      The buyer must hang a sign in a public place of the business for 6 months prior and 6 months after the sale announcing their intent to buy the business.

    • B. 

      The seller has no liability once the business has been sold.

    • C. 

      The seller must provide the buyer with a list of existing creditors.

    • D. 

      The seller must announce every hour on the hour of their intent to sell the business for 10 days prior to the sale.

  • 8. 
    In a Bulk Sales transfer, the buyer always automatically has liability. True or False?
    • A. 

      True

    • B. 

      False

  • 9. 
    Certain businesses are not included in the bulk sales act, such as cleaning shops, barber shops, pool halls, hotels and anything service oriented. True or False?
    • A. 

      True

    • B. 

      False

  • 10. 
    Fraudulent Conveyance is the illegal transfer of property or assets, the intention­ of which is to defraud creditors or to avoid payment of an obligation.True or False
    • A. 

      True

    • B. 

      False

  • 11. 
    By far, the most common form of a business entity is a...
    • A. 

      Sole Proprietorship

    • B. 

      General Partnership

    • C. 

      Limited Partnership

    • D. 

      Corporation

    • E. 

      Foreign Corporation

  • 12. 
    The most common transfer of assets is the asset sale where the secured party has taken over the debtor company or is controlling the sale or transfer of assets. True or False?
    • A. 

      True

    • B. 

      False

  • 13. 
    You can filter for action or action and result codes by using...
    • A. 

      The "+" key

    • B. 

      The "=" key

    • C. 

      Shift + Insert keys

    • D. 

      F3

    • E. 

      F6

  • 14. 
    When Metairie Bates scans back up onto the Bates drive, they note the file in the transaction notes with the action code:
    • A. 

      BM

    • B. 

      IM

    • C. 

      ME

    • D. 

      MM

    • E. 

      None of the above

  • 15. 
    When activating an account, you must verify the phone and address. True or False?
    • A. 

      True

    • B. 

      False

  • 16. 
    Before sending an account to PIC, you should always...
    • A. 

      Do a search engine search on the debtor company then call the debtor to test their willingness to pay.

    • B. 

      Brush your teeth

    • C. 

      Search for news or a website for the debtor, cross-reference the address & phone, check SOS for corporate make and verify the client provided phone number.

    • D. 

      Call the client and verify placement, balance and phone number placed, check SOS for other concerned parties, advise sales we are sending to PIC.

  • 17. 
    The investigative information is only for PIC and not used in the course of collections. True or False?
    • A. 

      True

    • B. 

      False

  • 18. 
    On a return call from a debtor after a PIC call, you should always...
    • A. 

      Ask them out on a date

    • B. 

      NOT discuss the asset & liability investigation into their financial solvency.

    • C. 

      Verify their name, position with the company and that they are authorized to speak on behalf of the company and its financial situation.

    • D. 

      Wish them a Merry Christmas or Happy Hanukah as appropriate.

    • E. 

      NOT tell them who the client is or the amount referred to us.

  • 19. 
    In the initial talk off, after presenting the debtor with the amount due, you should...
    • A. 

      Ask them when they can pay.

    • B. 

      Ask them if they are preapred to pay it today, then be quiet knowing that the first to talk loses.

    • C. 

      Ask them if they need the invoice.

    • D. 

      Ask them if this sounds about right.

    • E. 

      Any of the above. Phrasing really doesn't matter

  • 20. 
    If no return call from a PIC, you should
    • A. 

      Call the debtor the next day and recreate the sense of urgency.

    • B. 

      Properly status the account and date out a week to see if they will call you then.

    • C. 

      Stat sales that the debtor is not responding

    • D. 

      Request close and offset as debtor has no intentions to pay.

  • 21. 
    Settlement means to...
    • A. 

      Have lunch early.

    • B. 

      Stat the client

    • C. 

      Accept less than the balance owed.

    • D. 

      Pitch a tent.

  • 22. 
    Only the debtor may offer a settlement.True or False?
    • A. 

      True

    • B. 

      False

  • 23. 
    "Blanket settlement authority" means...
    • A. 

      We can settle an account for whatever we feel is a good number.

    • B. 

      A piece of bedding material used to make a tent.

    • C. 

      The client has provided us with a percentage of the balance that they would be willing to accept as settlement in full on any of their accounts.

    • D. 

      None of the above.

  • 24. 
    If blanket settlement authority is given on an account, you can find the percentage by..
    • A. 

      Shift +3

    • B. 

      Shift +M (for money!)

    • C. 

      The Z key

    • D. 

      Asking the collector next to you.

  • 25. 
    Regardless of how a settlement in full of an account is negotiated, all such settlements must be approved by the client. If you should authorize a settlement in full without the client's written approval, the differential between the actual balance and the amount accepted will be deducted from your salary or bonus.True or False?
    • A. 

      True

    • B. 

      False

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