Employer sponsored group health care insurance A) is typically poor coverage requiring supplemental private insurance. B) generally provides employees with no control over their health care coverage. C) usually provides the employee with a choice of two or more health care alternatives. D) is almost always entirely paid for through employee paid premiums. […]
To die “intestate” means to die A) while a resident of more than one state. B) without an heir apparent. C) without estate. D) without a valid will. ANSWER D
An inflation guard endorsement will A) protect you from a decline in housing prices by ensuring that you can resell your home for at least as much as you paid for it. B) protect you from a rise in housing prices by ensuring that you can resell your home for the initial purchase price plus […]
The mortgage clause A) ensures that the lender receives insurance payouts for structural damage to the home. B) ensures that the face amount of the policy covers the remaining balance on the loan. C) ensures that you have an insurable interest in the home. D) provides for periodic insurance payments. ANSWER A
Which of the following statements is TRUE? A) Firms can grow externally through mergers and acquisitions. B) A MERGER involves the formation of a new economic unit from two or more units. C) An ACQUISITION usually involves a much larger firm acquiring control of a smaller firm. D) All of the above are true. […]
Joan insures her house (with a market value of $50,000, not including $10,000 for the foundation and lot) with a $30,000 insurance policy calling for 80% co-insurance. A fire causes $10,000 worth of structural damage valued at replacement cost. Considering only the information provided, what amount is she likely to collect from the insurance company? […]
ETFs are more tax efficient than mutual funds. Indicate whether the statement is true or false ANSWER TRUE
Traditional financial statements include only interest costs associated with any debt and NOT the return required or expected by equity holders, which is included in the EVA approach. Indicate whether the statement is true or false ANSWER TRUE
Which of the following is NOT an appropriate reason for a merger or acquisition? A) Economies of scale that result from the merger. B) The replacement of an inefficient management team. C) To promote “agency problems.” D) To reduce overlapping costs. ANSWER C
An inflation guard endorsement on a homeowner’s insurance policy A) periodically increases the face amount of dwelling protection to reflect changes market value. B) ensures that insurance premiums will not rise faster than the general price level. C) ensures that insurance premiums will not rise faster than the average price of a new home. D) […]
