Premium Essay

Notes

In:

Submitted By elenasmiling
Words 1808
Pages 8
CHAPTER 6
THE FINANCIAL SERVICES INDUSTRY
FINANCE COMPANIES

Outline

I. Introduction II. Size, Structure, and Composition of the Industry A. Major Types of Finance Companies III. Balance Sheet and Recent Trends A. Consumer Loans B. Residential and Commercial Mortgages C. Business Loans III. Regulation

LECTURE NOTES

LO – Compare and contrast finance companies to commercial banks using information throughout the chapter.

I. INTRODUCTION

LO – Know the definition of finance companies (basically, the contents of the following paragraph).

● The primary function of finance companies is to make loans to both individuals and corporations. Services provided by finance companies include consumer lending, business lending, and mortgage financing. Some of the loans are similar to commercial bank loans, such as consumer and auto loans, but others are more specialized. Finance companies differ from banks in that they do not accept deposits, but instead rely on short- and long-term debt. Additionally, finance companies often lend to customers commercial banks find too risky.

II. SIZE, STRUCTURE, AND COMPOSITION OF THE INDUSTRY

● Finance companies were originated during the depression when General Electric Corp. created General Electric Capital Corp. (GECC) as a means of financing appliance sales customers unable to get installment credit from banks. By the late 1950s, banks were more willing to make installment loans so finance companies began looking outside their parent companies for business.
● Finance companies have been among the fastest growing FI groups in recent years with the industry experiencing growth of over 1,757 percent in the last 32 years. GMAC Commercial Mortgage Corp. (GMACCM), once a subsidiary of General Motors and the largest commercial mortgage lender in the U.S. received a

Similar Documents

Premium Essay

Note Taking

...Improving Your Note Taking ▪ Effective note taking is one of the keys to succeeding in school. Students should devote a considerable amount of time reviewing information discussed during classroom lectures. It is very difficult remembering specific details from classroom lectures without good notes. These note taking strategies will help you to take better notes: ▪ Make clear and accurate notes Make sure to take legible and accurate notes since it is not uncommon to forget key details discussed in class after it has ended. Frequently, students comprehend the teacher's lecture, so they'll neglect to jot down specific details only to forget them later. Students who keep accurate notes can review them later to fully grasp key concepts during personal study time. Additionally, since during classroom lectures teachers frequently cover many topics, effective notes enable students to concentrate on specific topics. ▪ Come to class prepared Students properly prepared for class usually take better notes. Proper preparation includes completing assigned reading prior to class and reviewing notes from previous lectures. Students who do this can ask questions about confusing concepts and be prepared for new topics. ▪ Compare your notes To ensure your notes are as accurate and detailed as possible, compare them with the notes of other students after class is over. This is useful because your colleagues will frequently write down lecture details that you...

Words: 602 - Pages: 3

Free Essay

Note Taking

...TAKING LECTURE NOTES I. There are many reasons for taking lecture notes. A. Making yourself take notes forces you to listen carefully and test your understanding of the material. B. When you are reviewing, notes provide a gauge to what is important in the text. C. Personal notes are usually easier to remember than the text. D. The writing down of important points helps you to remember then even before you have studied the material formally. II. Instructors usually give clues to what is important to take down. Some of the more common clues are: A. Material written on the blackboard. B. Repetition C. Emphasis 1. Emphasis can be judged by tone of voice and gesture. 2. Emphasis can be judged by the amount of time the instructor spends on points and the number of examples he or she uses. D. Word signals (e.g. "There are two points of view on . . . " "The third reason is . . . " " In conclusion . . . ") E. Summaries given at the end of class. F. Reviews given at the beginning of class. III. Each student should develop his or her own method of taking notes, but most students find the following suggestions helpful: A. Make your notes brief. 1. Never use a sentence where you can use a phrase. Never use a phrase where you can use a word. 2. Use abbreviations and symbols, but be consistent. B. Put most notes in your own words. However, the following should be noted exactly: 1. Formulas 2. Definitions 3. Specific facts C. Use outline form and/or...

Words: 1031 - Pages: 5

Free Essay

Note Taking Assignment

...Dean Helton Note-Taking Assignment 1. Why did you choose Cornell, Outline, or Visual Map? I chose the visual map way of taking my notes this morning at church. I have actuallynever taken my notes that way before, but I really enjoyed it. I am a kinesthetic learner and seeing maps and graphs help me understand things a lot better than just simple notes. I was nervous at first to take my notes this way but I very quickly got the hang of it. After the sermon it was much easier for me to look over my notes and understand what the message and sub nots were pointing out. I will now take all of my sermon notes this way. 2. What did you like about the style of note taking you chose? I enjoyed using this style for many reasons. One of the main reasons was because it gave me the opportunity to listen more to the sermon wrather than focusing on writing down the notes that we were given. It also was a huge help to me after when I was looking over the notes. It gave me a clearer picture of what the sermon was about. 3. What did you dislike about the style of note taking you chose? I think the only thing I disliked about it is that it is almost like an outline,a nd if you are not careful you could miss an important long point that need sto be recorded just for the sake of making your picture graph look good. I added a few take away points at the bottom of my notes that I felt like I needed to add so that I could better understand the over all message. 4. How do you plan...

Words: 380 - Pages: 2

Free Essay

Note

...FIVE NOTETAKING METHODS Notetaking Great note-taking takes practice. You have to find a method that works for you, and that may change depending on the class that you’re in (for example, a science class versus a humanities class). Here are 5 methods that are proven to be successful. Read over each one and decide if there’s one that might work for you. These styles are described in the format you would use to take notes in class. You might find that a comfortable method is a combination of 2 or more of the ones listed here, and that’s fine. Figure out what works for you and stick with it! Page # Layout of the page and where to write THE CORNELL METHOD Today’s Date You physically draw a line vertically down your paper, leaving 2.5 inches on the left and 6 inches on the right. This allows you to take notes on the right-hand side of the page leaving space on the left to summarize the main point with a cue word or phase. When the instructor moves to a new topic, skip a line. It is also a great idea to use some organizational structure to your whole page. Use bullets!  Use an indented system – kind of like outlining You can underline important words. If you aren’t able to completely write down an idea before the instructor moves on to a new topic, fill it in after class. After class, test your knowledge of course material by covering up the right side of the page, reading the cue words, and trying to remember as much information as possible. Then check to see if you remembered...

Words: 887 - Pages: 4

Free Essay

Notes

...between people in our rapidly advancing generation. In Paul Dooley and Winnie Holzman’s play Post-Its (Notes on a Marriage), we watch as two young people who are in love and newly married, begin to leave each other post its notes when they have no time for communication with one another. The author successfully tells an amazing love story using a unique means of communication. According to Anne Maydan Nicotera, “communication is critical to inter-personal relationships” (Nicotera). The notes vary from topics such as one not wanting to wake the other as they leave early for work, for tasks that need to be completed throughout the day. The audience, through the reading of the post- its notes views the couple’s life as it goes through the early stages of a relationship, to having a child, to a downhill slide of their relationship, the steady reconstruction of a marriage, and eventually it goes on until one of the two passes on. By leaving these post-its notes, the unnamed couple manages to have a basis of communication upon which they both are able to agree upon. They manage to find a convenient and effective way to convey what they need to say to one another through post-its notes, and even though things get rough, and arguments ensue, they find their strength and return to one another. Their relationship is refound with a clean slate, and although there are occasional spats in the notes, the audience can see that their relationship is much easier once they settled their problems and...

Words: 1316 - Pages: 6

Free Essay

Death Note

...Death Note (Japanese: デスノート Hepburn: Desu Nōto?) is a Japanese manga series written by Tsugumi Ohba and illustrated by Takeshi Obata. The story centers on Light Yagami, a high school student who discovers a supernatural notebook that grants its user the ability to kill anyone whose name and face they know. The series centers around Light's subsequent attempts to create and rule a world "cleansed of evil" as "God" using the notebook, and the efforts of a detective known as L to stop him. Death Note was first serialized in Shueisha's manga magazine Weekly Shōnen Jump from December 2003 to May 2006. The 108 chapters were collected and published into 12 tankōbon volumes between May 2004 and October 2006. A television anime adaptation aired in Japan from October 3, 2006, to June 26, 2007. Composed of 37 episodes, the anime was developed by Madhouse and directed by Tetsuro Araki. A light novel based on the series, written by Nisio Isin, was also released in 2006. Additionally, various video games have been published by Konami for the Nintendo DS. The series was adapted into three live-action films released in Japan on June 17, 2006, November 3, 2006, and February 2, 2008. Every piece of Death Note media has been licensed and released in North America by Viz Media, with the exception of the video games and soundtracks. The episodes from the anime first appeared in North America as downloadable by IGN, before Viz licensed it and it aired on Bionix in Canada and on Cartoon Network...

Words: 302 - Pages: 2

Free Essay

Note Taking

...Note-taking for higher education Introduction Note-taking at university can be a very important skill for the majority of students. The NOTE template can be used for taking notes in lectures, seminars, tutorials, etc., as well as notes taken from books, audio and/or video. Conventional A4 lined paper, or a digital/electronic device such as a laptop, netbook, tablet, etc. can be used, depending on the student’s preferred method of note-taking. Notes should be in summary form and long sentences avoided. Students should only write on one side of the page if using paper and pen –as this makes revising and reviewing easier. Use conventional abbreviations, notations and symbols wherever possible. http://www.gre.ac.uk/study/support/needs/disabled/aap/note-taking There are a number of different ways to take notes. So, you need to find a method you feel most at ease with. However, there are four general ideas that could help you to improve your note taking skill: ● Use white space to separate major ideas. ● Try to limit your notes to one concept or section per page. ● Use abbreviations and/or symbols where possible to avoid long sentences. ● Write down the information in your own words. Method: 1) The cornell method 2) The outlining method 3) Mind mapping 4) The sentence method http://owll.massey.ac.nz/study-skills/note-taking-methods.php Why important? 1) help to extend your attention span(Taking notes helps keep you focussed on your...

Words: 618 - Pages: 3

Free Essay

Death Note

...throughout his works. The will to power can be described as follows: “when one is endowed with power, one finds pleasure in utilizing ones own power. Also, when someone has the will to power they will become in love with the very idea of using their power to dominate others even by ways of cruelty” (Nietzsche). In the graphic novel, Death Note, the deeds of the protagonist of the story, Light Yagami, represents the destruction of one’s rationality and devotion to the will to power principal. What starts as a once-in-a-lifetime chance to save the world for Light becomes a path built on the pleasure of his own dominations and rise to power. The premise of Death Note is both simple and provocative: floating above the human world is the world of the shinigami, gods of death who cause human beings to die by writing their names in notebooks. Occasionally, either by accident or malice, a shinigami drops it’s notebook into the human world and an innocent person picks it up. In Death Note, brilliant and handsome young high school student Yagami Light picks up a notebook dropped by a shinigami, who has fortunately written the rules of the Death Note on the cover. The most important rule is the most simple—if you write down the name of a person whose face you know, that person will die of a heart attack within forty seconds (T. Ohba). Light later discovers many permutations—the most significant is that he can specify both the time and...

Words: 2074 - Pages: 9

Free Essay

Note Taking

... Academic Skills LNG 002-0 NOTE TAKING By AFROZA KAMAL NODI Student no. 1227636 A paper submitted in partial fulfillment of the requirements for the Bachelor of International foundation course in Academic Skills in the Department of Language &Communication May 2013 Note taking Introduction Note taking is a very useful thing to memorise something also it is a learning process itself. However, it is useful when we can write notes in a right way. The aim of this report is to describe what is note taking, how we can take notes and why we take notes also when we should take notes and so on. What is note taking? Note taking is a process to write down all key words to help remember the main idea. It is an art to take someone else’s words from their lectures, speeches or from reading. “Note taking means organising your own thoughts ,often creatively, and note taking means summarising someone else’s thoughts, as expressed in a book, article or lecture” (Buzan, 2010). How we can take notes? There are several ways of taking notes such as: * Linear patterning * Symbols and Abbreviations * Analysis * Cornell method * Mind map * Structured Lists (numerical/alphabetical) * Linear patterning: liner notes are usually written in straight lines. Grammar, chorological sequence and hierarchical sequence is also used ( (Buzan, 2010). This is the typical outline format of note taking. * Symbols: These include letters...

Words: 1231 - Pages: 5

Free Essay

Death Note

...Death Notes and Shinigamis Light’s POV “Hyuk Hyuk Hyuk”, an unusual thing mutters. “What is so funny Ryuk?”, Light said to no one. “Hyuk Hyuk, nothing, it’s just that the look on your face yesterday was priceless, Hyuk Hyuk”, the thing replied. “Those two detectives just surprised me”, Light replied. “Yesterday you didn’t say a thing to me all day even though I keep talking”, the thing said. “What do you expect? You’re a shinigami for crying out loud, and no one else can see you. They’ll think I’m insane if I talk to you”, Light replied. Ryuk, a Shinigami/Death God. He has a monstrous yet a bit human like appearance, has big red eyes, scary face and huge hidden black wings. “Oh yeah, that lady detective is fast and quite smart to have been able to think that, Hyuk Hyuk”, Ryuk said while chuckling. “To be honest, it was out of my expectation that she was THAT smart”, Light said irritated. “Hyuk Hyuk, guess Light can be outsmarted by a girl sometimes”, Ryuk said. “Hmph”, Light replied. General POV “Phew, finally done with the groceries. Good thing I’m not needed in the case yet, I can enjoy a day off-like day”, I said as I went out the grocery store with a bunch of plastic bags in both of my arms. I walked in to the nearest cake shop that I can find then bought a strawberry cheesecake. As I went back to walking home, I noticed something fell on a vacant lawn. I went to the lawn to check what it is. “Hm? What’s this?”, I said as I picked up the item. “Death...

Words: 2417 - Pages: 10

Free Essay

Promissory Note

...SECURED PROMISSORY NOTE (AMORTIZED PAYMENTS) $__________________[Amount of Note] This promissory note (the “Note”) is made and effective _____________ [Date], by and between ____________________, an [individual] [corporation] [limited liability company] [etc.] (the “Borrower”), and _______________________, an [individual] [corporation] [limited liability company] [etc.] (the “Payee”). 1. PROMISE OF PAYMENT. FOR VALUE RECEIVED, the Borrower promises to pay to the Payee, at _______________________ [Address], _________[City], ___ [State] __________ [Zip Code], or at such other place as the Payee may designate in writing from time to time, the principal amount of _________________ Dollars ($_______), together with interest accruing on the unpaid balance thereof until due. The interest rate on this Note shall be an annual rate of interest equal to [Rate] ([Rate]%) percent, or the maximum amount allowed by applicable law, whichever is less. Interest shall be computed on the basis of a year of 365 days and the actual number of days elapsed. 2. MONTHLY INSTALLMENT PAYMENTS. The Borrower will pay said principal and interest to the Payee in equal installment payments of _______________, on the ____ day of each month, until the principal and interest have been paid in full. [INSERT OTHER PAYMENT SCHEDULE AS AGREED] Payments shall be to the Payee’s address as designated above. All payments will be applied first to interest and the remainder to principal, and interest...

Words: 1143 - Pages: 5

Free Essay

Taking Notes

...Taking Notes Eboni M. Whitfield Grantham University Student Success & Week 6 Taking Notes “Hang on to the world as it’s spinning around. Just don’t let the spin get you down”. This will always be one of my favorite songs by a great lyricist, Donny Hathaway; Someday we’ll be Free. In learning and retaining songs, I refrain from listening to it over and over again. I listen to a line of the song and write each line out. Writing the lyrics to songs is almost like note-taking. This strategy is in alignment with the Sentence Strategy in which I feel is most useful and effective in note-taking. The sentence note-taking method consists of writing a list of sentences as you read through the material (Johnson, 2011). The advantage to this strategy remains that it is more organized and it records most of the information. A disadvantage makes it difficult when it comes to determining the focal points and editing. Based on the courses I am taking, is this strategy most effective? Yes. Are there other strategies that may be effective? Yes. I have also found that with note-taking in my current courses, the strategy that best suits me is the mapping strategy. This strategy has been used in the past and in the light of the concepts of note-taking, it is also resourceful. This strategy allows readers to pinpoint the main theory of what they read and provide a visual representation of relationships between information and ideas (Johnson, 2011). Because research...

Words: 381 - Pages: 2

Free Essay

Promissory Note Example

...THIS NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT. CONVERTIBLE PROMISSORY NOTE Date of Issuance $XXXX (Date), 2015 FOR VALUE RECEIVED, (XXXX), an Indonesian Company (the “Company”), hereby promises to pay to the order of XXXX.(the “Lender”), the principal sum of $XXXXX, together with interest thereon from the date of this Note. Interest shall accrue at a rate of six percent (X%) per annum, compounded annually. Unless earlier converted into Conversion Shares pursuant to Section 2.2 of that certain Note Purchase Agreement dated XXXX among the Company, Lender and certain other investors (the “Purchase Agreement”), the principal and accrued interest shall be due and payable by the Company on demand by the Majority Note Holders at any time after the Maturity Date. This Note is one of a series of Notes issued pursuant to the Purchase Agreement, and capitalized terms not defined herein shall have the meaning set forth in the Purchase Agreement. 1. Payment. All payments shall be made in lawful money of the United States of America at the principal...

Words: 920 - Pages: 4

Premium Essay

Refinance Notes Payable

...xxxx, Assistant Accountant of Tyler Corporation Date: January 15, 2011 Re: Classification of Note Payable on the December 31, 2010 Balance Sheet After checking the Generally Accepted Accounting Principles, I want to explain how to classify the $100,000 note payable on the December 31, 2010 balance sheet. According to Accounting Standard Codification 470-10-45-14, “A short-term obligation shall be excluded from current liabilities if the entity intends to refinance the obligation on a long-term basis”, and “After the date of an entity's balance sheet but before that balance sheet is issued or is available to be issued, a long-term obligation or equity securities have been issued for the purpose of refinancing the short-term obligation on a long-term basis. If equity securities have been issued, the short-term obligation, although excluded from current liabilities, shall not be included in owners' equity.” Tyler Corporation has the same situation above. On January 5, 2011, Tyler Corporation sold 2,000 shares of its $10 par common stock for $80,000. It intends to use these plus $20,000 cash on hand to repay the note payable on March 6. Therefore, the company should get $80,000 common stock out of owner’s equity and report the $80,000 as note payable in long-term liabilities on the December 31, 2010 balance sheet. For the $20,000 cash on hand, the company should report it as note payable in current liabilities on the December 31, 2010 balance sheet. Thank you for your...

Words: 277 - Pages: 2

Premium Essay

The Innovation Cycel of the Post It Note

...“If I had thought about it, I wouldn't have done the experiment. The literature was full of examples that said you can't do this.” - Spencer Silver on the work that led to the unique adhesives for 3-M Post-It Notepads. Innovation has been described by The Oxford Dictionary as the introduction of new things, ideas or ways of doing something. The Post-it Note is a product so conceptually simple, that in the technologically advanced time we live in, we have been almost desensitised to its brilliant innovation. The innovation of the Post It Note went through a number of distinct stages and processes. In this assignment I will attempt to give a clear and cohesive analysis starting from the earliest ideas of the Post It right through to the products available today. 3M The physical invention of the post it spanned over a period of 10 years, however, I believe the earliest derivation of the modern day Post It Note can be traced back to the very establishment of the 3M Company itself. In 1902 the business got off to a rather bad start when a group of investors by mistake bought a mountain containing worthless mineral to start a business to mine corundum to manufacture sand paper). Unsurprisingly the company did not generate profit for 14 years. Seemingly spurred on by their less than successful origins, 3m have since always strived to create a working environment in which innovation can flourish. Brand (1998) on the topic of 3m states that “to guarantee such conditions are in place...

Words: 2925 - Pages: 12