What was the average annual rate of return on common stocks during the
What was the average annual rate of return on common stocks during the period 1926 to 2014? A) 10.1% B) 18.6% C) 9.5% D) 15.4% ANSWER A
Date: September 19th, 2020
What was the average annual rate of return on common stocks during the period 1926 to 2014? A) 10.1% B) 18.6% C) 9.5% D) 15.4% ANSWER A
Date: September 19th, 2020
Which type of business organization is the best for attracting new equity capital? A) Sole proprietorship B) Limited liability corporation C) General partnership D) A public corporation ANSWER D
Date: September 19th, 2020
Which of the following is an advantage of the general partnership form of business organization? A) double taxation B) limited liability of business owners C) low cost of formation D) easy ability to raise capital ANSWER C
Date: September 19th, 2020
All of the following are ISO commercial crime coverage exclusions EXCEPT A) dishonest acts committed by a named insured or partner of the named insured. B) indirect loss resulting from covered losses. C) theft committed by an employee of the named insured. D) losses from unauthorized trading in stocks and bonds. ANSWER Answer: […]
Date: September 19th, 2020
Which of the following statements is (are) true with respect to financial institution bonds? I. Fidelity coverage covers losses resulting from the dishonest acts of employees. II. Financial institutions usually insure their crime exposures through financial institutions bonds. A) I only B) II only C) both I and II D) neither I nor II c […]
Date: September 19th, 2020
Bernice is an underwriter. She is reviewing a commercial crime coverage application. The coverage will be written using the discovery form. Bernice is concerned that a large undiscovered loss may exist prior to the policy’s inception date. Which provision should Bernice add to the policy to protect the insurer against liability for such previous losses? […]
Date: September 19th, 2020
Depositors often cite ________ as the most important consideration in selecting a particular bank. A) safety B) low charges C) size D) geographical convenience ANSWER D
Date: September 19th, 2020
A burglar took some blank checks during a break-in at XYZ Company. He was careful to make sure that the theft would be difficult to discover. Three months later, he wrote himself a check for $20,000 and signed the company treasurer’s name on the check. After the check was cashed, the loss was discovered. Which […]
Date: September 19th, 2020
Eagle Enterprises Inc., has an asset turnover of 1.1, a financial leverage ratio of 1.67, a profit margin of 12% and a dividend payout ratio of 25%. What is the firm’s sustainable growth rate? A) 29.39% B) 14.07% C) 5.51% D) 16.53% ANSWER D Explanation: D) Sustainable Growth = ROE * b = […]
Date: September 19th, 2020
In the ISO Commercial Crime Coverage form, robbery is defined as the A) unlawful taking of property to the deprivation of the insured. B) unlawful taking of property from the care and custody of a person by someone who has caused or threatens to cause bodily harm or who has committed an unlawful act witnessed […]
Date: September 19th, 2020