Gift basket company’s liabilities exceed its assets. gift basket hires hill & dale, an accounting firm, to prepare a balance sheet. through hill & dale’s negligent omissions, the sheet shows a net worth. investment bank relies on the balance sheet to make a loan to gift basket. when gift basket defaults, the bank files a suit against hill & dale. under the restatement (third) of torts, hill & dale is most likely

agriculture and oil. natural resources, industry.

consumer credit. an advantage is that it allows consumers to afford expensive goods and services now, increasing their standard of living. however, a disadvantage is that it creates a trap for debt, if people do not have self control, they may see themselves filing personal bankruptcy.

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.