Which of the following statements is true with regard to the kidnap/ransom extortion coverage available through ISO’s Commercial Crime Coverage program? A) Ransom is covered only if the hostage is returned alive. B) Money surrendered as a result of an extortion threat is covered. C) The kidnap/ransom coverage is limited to the direct loss associated […]
Which of the following statements is (are) true with respect to the kidnap/ransom and extortion coverage available through ISO’s Commercial Crime Coverage program? I. It covers the loss of money that is paid for ransom if someone is kidnaps. II. It covers some indirect costs association with a kidnapping, such as hiring a hostage negotiator. […]
Metro City would like a pedestrian bridge constructed across Big Creek. The city will accept bids on the project until a specified date. Bidders must submit a bid bond that guarantees if the bid is accepted, the bidder will sign the construction contract and furnish a bond that guarantees the construction work will be completed […]
White’s World Wide Delivery Inc. has an unlevered beta = 1.25, a debt-equity ratio of 0.30, a tax rate of 0.20, and a levered beta = 1.55. If the firm increased the debt-equity ratio to 50%, what would be the impact on the levered beta? A) Increase to a value of 1.75 B) No change […]
The income statement for Simpson, Inc. indicates that tax expense was $30,000. The balance sheet indicates that taxes payable for the same year increased by $5,000. What amount did Simpson, Inc. actually pay in taxes during this year? A) $20,000 B) $25,000 C) $15,000 D) Cannot be determined without the cash balance ANSWER […]
Which of the following statements regarding limited partnership is TRUE? A) There is no limit on a limited partner’s liability. B) A limited partner is not liable until all the assets of the general partners have been exhausted. C) A general partner’s liability is limited by the amount of their investment. D) A limited partner’s […]
Which of the following statements about the commercial crime insurance policy is true? A) Loss from the unauthorized disclosure of confidential information is covered. B) Theft committed by the named insured or his/her partners is covered. C) Inventory shortages are only covered if proof of loss depends on an inventory computation or on a profit […]
Two tellers of a Tenth National Bank branch colluded to embezzle $40,000 over a six-month period. State bank examiners detected the embezzlement during a routine bank examination. Tenth National purchased a financial institution bond. Under which of the following insuring agreements is this loss covered? A) Insuring Agreement A—Fidelity B) Insuring Agreement B—On Premises C) […]
Suppose the following rates are averages for banks in your area: interest checking accounts pay 1%, savings accounts pay 2%, and one-year certificates of deposit pay 3%. All accounts are federally insured by the FDIC. The difference in rates can be explained mainly by A) maturity premiums. B) liquidity premiums. C) inflation risk premiums. D) […]
Which of the following statements is true regarding covered losses under the commercial crime coverage form? A) Theft committed by business partners of the named insured is covered. B) Money surrendered as a result of an extortion threat is covered. C) A loss that results from disclosure of confidential business information, such as a patent […]
