Red Seal Cosmetology Practice Exam

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What is defaulting?

Failing to show up for work
Not paying back your loans
Reneging on a contract agreement
Breaking a business deal

The correct answer is: Not paying back your loans

Defaulting refers to the failure to pay back a loan on time or in full. Options A, C, and D may also involve failing to fulfill an obligation, but they specifically refer to other types of agreements or commitments. Option A is more specific to employment, option C is specific to a legal contract, and option D could encompass a wide range of business-related agreements. However, defaulting specifically refers to not paying back a loan.