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: […]
Even though many U.S. companies, including General Electric, IBM, Walt Disney, and American Express, have successfully restructured their operations to expand internationally, not many foreign firms have made their mark in the United States. Indicate whether the statement is true or false ANSWER FALSE
During the period 1990 to 2014, the average yield on 3-month U.S. Treasury bills was 3.04%, the average inflation rate was 2.64%, the average yield on 30-year Treasury bonds was 5.49%, and the average return on 30-year Aaa-rated corporate bonds was 6.35%. The real risk-free short-term interest rate is A) 2.13%. B) 2.97%. C) 0.40%. […]
All of the following statements about a surety are true EXCEPT A) A surety theoretically expects no losses to occur. B) The principal is the party who agrees to answer for the debt, default, or obligation of another party. C) The surety has the legal right to recover a loss payment from the defaulting principal. […]
Graham is a cashier at a convenience store. A customer pulled a gun on him, and said that he would shoot Graham unless he gave him all the money in the cash register. This crime, which is covered under the ISO commercial crime coverage form, is called A) extortion. B) murder. C) robbery. D) burglary. […]
The least effective method of protecting against overdrafts generally is to A) maintain a larger-than-normal account balance. B) arrange for automatic transfers from a savings account. C) arrange for a credit-card loan to cover the overdraft. D) ignore them since banks do not charge for overdrafts. ANSWER D
Apollo Corp reported the following balance sheet: Cash $28,000 Accounts payable $5,000 Accounts receivable 15,000 Notes Payable 12,000 Inventory 45,000 Accruals 17,000 Net Fixed Assets 122,000 Long-Terms Debt 45,000 Common Stock 10,000 Retained Earnings 121,000 Total assets $210,000 Total Liab. & Equity $210,000 Apollo Corp’s debt ratio is A) 37.62%. B) 32.17%. C) 39.45%. D) […]
Which of the following statements is true concerning overdrafts? A) An effective way to prevent them is to “overload” the account. B) They can be avoided by arranging an automatic transfer from a savings account. C) They are inexpensive nuisances because banks usually do not charge for overdrafts. D) They differ from “bounced checks” in […]
You are thinking of buying a craft emporium. It is expected to generate cash flows of $30,000 per year in years 1 through 5, and $40,000 per year in years 6 through 10. If the appropriate discount rate is 8%, what amount are you willing to pay for the emporium? A) $215,048 B) $167,943 C) […]
Managers need to take into account a number of perspectives when assessing the “first” criteria. The ________ focuses on comparing the firms capital structure with those of industry competitors. A) competitive perspective B) internal perspective C) investor perspective D) creditor perspective ANSWER A
