Carl Lee lost his wallet at the beach five days ago. Carl is sure there were three credit cards in the lost wallet. Assuming he’s right and notifies the banks, Carl can lose as much as ________, assuming he has no private insurance protection. A) $ 150 B) $500 C) $650 D) unlimited losses […]
Date: September 19th, 2020
If a firm is trying to grow more rapidly, which of the following identifies a non-financially-related course of action? A) increase the retention ratio B) reduce dividends C) increase asset turnover D) increase the debt to equity ratio ANSWER C
Date: September 19th, 2020
In a surety arrangement, the party who benefits from the bond if the bonded party fails to perform is the A) principal. B) obligee. C) fidelity. D) surety. ANSWER A) principal. B) obligee. C) fidelity. D) surety. Answer: B
Date: September 19th, 2020
Al’s Electric Service is an electric contracting company in Metro City. The owner of the company, Al Richards, posted a bond guaranteeing that all work performed by his company will comply with local building codes. This bond is an example of a A) fiduciary bond. B) license and permit bond. C) contract bond. D) judicial […]
Date: September 19th, 2020
If a firm has an unlevered beta equal to 1.0 a debt-equity ratio of .50 and a tax rate of .30, calculate the value of the firm’s levered beta. A) 0.65 B) 1.00 C) 1.35 D) 1.73 ANSWER C Explanation: C) βL = (1+(D/E)(1-t))* βU = (1+(.50)(1-.30)*1 = 1.35.
Date: September 19th, 2020
An automobile is usually an example of a lifestyle asset. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
In the search for profits, U.S. corporations have been forced to look beyond our country’s borders. All of the following contributed to the movement EXCEPT A) acceptance of the free market system in Third World countries. B) collapse of communism. C) information technology revolution. D) trade protectionism. ANSWER D
Date: September 19th, 2020
Liquid assets are less risky than investment assets. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
XYZ Insurance Company markets a wide range of coverages. One type of coverage provides monetary compensation if a bonded party fails to perform certain acts. This coverage is called A) property insurance. B) liability insurance. C) a fidelity bond. D) a surety bond. ANSWER Answer: D
Date: September 19th, 2020
A cashier at Food World Supermarket accepted a phony $100 bill. Which ISO commercial crime coverage is designed to cover such a loss? A) Forgery or Alteration B) Money Orders and Counterfeit Currency C) Inside the Premises—Theft of Money and Securities D) Inside the Premises—Robbery or Safe Burglary of Other Property ANSWER Answer: […]
Date: September 19th, 2020
