Melvin and Neil run a pawnshop in their neighborhood. They offer loans to individuals in exchange for personal items of higher or equal value, which are used as collateral. If an individual is unable to repay the loan, Melvin and Neil then sell these items at higher rates. In this scenario, Melvin and Neil's pawnshop is an example of a _____.

Question

Quizplus · Accepted Answer

Melvin and Neil's pawnshop is a business because it operates to make a profit by providing loans and selling items at higher rates if the loans are not repaid.

Melvin and Neil Run a Pawnshop in Their Neighborhood