Based on the information in Table 4-3, the operating profit margin is A) 33.33%. B) 18.59%. C) 13.75%. D) 25.80%. ANSWER C
Date: September 19th, 2020
A-1 Electrical Service is an electrical contractor that employs 14 electricians. A-1 faces many loss exposures. One general liability exposure arises out of faulty work that A-1 electricians may perform for customers at their homes or businesses. This liability exposure is known as A) premises and operations liability. B) products liability. C) completed operations liability. […]
Date: September 19th, 2020
Which of the statements below are true? A) A corporation is the business form that is typically the most complicated (legally) to establish. B) The sole proprietorship and the general partnership both feature unlimited liability. C) The corporation and the limited partnership both provide at least some owners with limited liability. D) all of the […]
Date: September 19th, 2020
The prime lending rate is the base rate on A) corporate loans. B) auto loans. C) mortgage loans. D) home equity loans. ANSWER A
Date: September 19th, 2020
If bond and stock markets are efficient, then the timing of when to issue debt or equity should not matter. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
An investor currently holds the following portfolio: Amount Invested 8,000 shares of Stock A $16,000 Beta = 1.3 15,000 shares of Stock B $48,000 Beta = 1.8 25,000 shares of Stock C $96,000 Beta = 2.2 The investor is worried that the beta of his portfolio is too high, so he wants to sell some […]
Date: September 19th, 2020
ABC Company purchased an ISO Commercial General Liability Policy. The agent who sold ABC the coverage noted that the coverage trigger in this policy was different from the trigger in the previous policy. The new policy covers only those claims which are first reported during the policy period, provided the event occurred after a retroactive […]
Date: September 19th, 2020
The primary purpose of the monthly review and control is A) to indicate future revised spending amounts, assuming some prior variances. B) to revise action plans. C) to identify family members causing unfavorable variances. D) make sure the previous month’s budget is balanced. ANSWER A
Date: September 19th, 2020
Wendy purchased 800 shares of Genetics Stock at $3 per share on 1/1/12. Wendy sold the shares on 12/31/12 for $3.45. Genetics stock has a beta of 1.9, the risk-free rate of return is 4%, and the market risk premium is 9%. Wendy’s holding period return is A) 15.0%. B) 16.5%. C) 21.1%. D) 17.6%. […]
Date: September 19th, 2020
Which of the following statements is true concerning the ISO employment-related practices liability form? A) Coverage is provided without a co-payment provision. B) Legal defense costs are included as part of the policy limit. C) Wrongful termination is excluded from coverage. D) Liability to employees is excluded from coverage. ANSWER Answer: B
Date: September 19th, 2020
