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
Advantages of the corporate form of business organization include A) minimal legal requirements. B) double taxation. C) easier transfer of ownership. D) none of the above ANSWER C
Date: September 19th, 2020
You are considering investing in Ford Motor Company. Which of the following are examples of diversifiable risk? I. Risk resulting from possibility of a stock market crash. II. Risk resulting from uncertainty regarding a possible strike against Ford. III. Risk resulting from an expensive recall of a Ford product. IV. Risk resulting from interest rates […]
Date: September 19th, 2020
Which of the following is NOT a disadvantage of a sole proprietorship as a form of business organization compared to the corporate form of business organization? A) Access to the capital markets B) Unlimited liability of the owners C) Subject to the double taxation D) Limited liability of the shareholders ANSWER D
Date: September 19th, 2020
