Introductory Business Law CLEP Prep Practice Exam

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Prepare for the Introductory Business Law CLEP Exam with our comprehensive quiz, designed to cover essential legal concepts and practices. Study effectively and boost your chances of success!

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What is a debt collection agency?

An agency that helps businesses collect debts from customers
An agency that helps individuals collect debts from businesses
An agency that helps individuals collect debts from other individuals
An agency that helps businesses collect debts from other businesses

The correct answer is: An agency that helps businesses collect debts from customers

A debt collection agency is a company that assists businesses in collecting unpaid debts from customers. This is done by contacting the individuals who owe the debt and working to arrange payment. Option B is incorrect because debt collection agencies typically work on behalf of businesses, not individuals. Option C is incorrect because debt collection agencies usually do not help individuals collect debts from other individuals. Option D is incorrect because debt collection agencies focus on collecting debts from individuals, not other businesses.