As an initial assumption, it is reasonable to assume that firms are reluctant to do all of the following EXCEPT: A) purchase new fixed assets. B) issue new equity. C) change dividend policy. D) change debt policy. ANSWER A
Date: September 19th, 2020
The main function of a balance sheet is to show your net worth at a point in time. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Define Dual Class Shares of stock. Why would a firm consider issuing dual classes of stock? Are dual shares common in the United States? In what type of industry are they found? What will be an ideal response? ANSWER Dual class stock exists when a firm issues two types of equity shares, generally […]
Date: September 19th, 2020
Based on the information in Table 4-3, the debt ratio is A) 40.24%. B) 18.38%. C) 53.43%. D) 48.48%. ANSWER D
Date: September 19th, 2020
Which form of organization is free of initial legal requirements? A) general partnership B) sole proprietorship C) corporation D) both A and B ANSWER D
Date: September 19th, 2020
A money market deposit account (MMDA) is A) a limited-access savings account with a minimum balance requirement offering money market rates. B) the statement a money market mutual fund sends you showing activity in your account. C) any savings account at a federally-insured financial institution that offers higher rates but is not insured. D) similar […]
Date: September 19th, 2020
Ted is risk manager of XYZ Company. He is concerned his company might be sued by current or former employees alleging wrongful termination, failure to promote, racial or gender discrimination, or sexual harassment. What type of liability insurance can Ted purchase to cover these types of claims? A) workers compensation insurance B) employer liability insurance […]
Date: September 19th, 2020
Holiday DeCor Company is insured by a commercial general liability policy (CGL). Holiday DeCor rented a storage facility for one month to store some excess inventory. While visiting the storage facility, a Holiday DeCor employee discarded a cigarette. The resulting fire severely damaged the storage facility. Which statement is true regarding coverage of this damage […]
Date: September 19th, 2020
Medical malpractice insurance written on a claims-made basis can leave a surgeon vulnerable to malpractice claims if the surgeon retires, changes insurers, or drops coverage. A provision can be added to the claims-made form that protects the surgeon for future claims arising from incidents that occurred while the claims-made policy was in force. This provision […]
Date: September 19th, 2020
Which of the following statements concerning directors and officers liability insurance (D&O) is (are) true? I. D&O policies usually cover the personal liability of directors and officers. II. D&O policies exclude coverage for claims brought by employees and by stockholders. A) I only B) II only C) both I and II D) neither I nor […]
Date: September 19th, 2020
