All of the following forms of business organizations provide limited liability to all owners EXCEPT A) S-type corporation. B) limited partnership. C) limited liability company. D) corporation. ANSWER B
Date: September 19th, 2020
Jenkins Company purchased a commercial umbrella policy with a $10 million limit and a $100,000 self-insured retention. The insurer required Jenkins Company to carry a $1 million per-occurrence limit on its general liability policy and a $1 million per-occurrence limit on its business auto policy. Jenkins purchased these required limits. A Jenkins driver was negligent […]
Date: September 19th, 2020
A firm paid dividends of $10,000, paid interest of $20,000, reduced debt principal outstanding (paid off debt) in the amount of $100,000, and sold new stock for $150,000. What was the firm’s cash flow from financing activities? A) +$280,000 ($280,000 flowed into the firm) B) -$280,000 ($280,000 flowed out of the firm) C) -$20,000 ($20,000 […]
Date: September 19th, 2020
A deferred annuity will pay you $500 at the end of each year for 10 years, however the first payment will not be made until three years from today (payments will be made at the end of years 3 through 12). What amount will you have to deposit today to fund this deferred annuity? Use […]
Date: September 19th, 2020
Executives of a Fortune 500 firm blocked an acquisition attempt by a larger company. When the stockholders learned they could have made large profits had the acquisition not been blocked, they filed a lawsuit against the executives of the firm. What type of liability insurance protects the executives of the organization against such suits? A) […]
Date: September 19th, 2020
HRC Company purchased an unendorsed ISO Commercial General Liability (CGL) policy. Which of the following claims would be covered under the CGL? A) workers compensation liability B) liability arising from intentional acts C) personal and advertising injury liability D) professional liability ANSWER Answer: C
Date: September 19th, 2020
“Unfortunately, one thing we know for certain about financial forecasts is that they are almost always wrong.” If the preceeding statement is generally thought to be true, why do we spend so much time and money on financial forecasting?! What will be an ideal response? ANSWER Perhaps one way to address this statement […]
Date: September 19th, 2020
Based on the information in Table 4-3, the total asset turnover is A) 2.10 times. B) 2.42 times. C) 3.25 times. D) 2.87 times. ANSWER B
Date: September 19th, 2020
Based on the information in Table 4-3, the operating return on total assets is A) 33.33%. B) 10.06%. C) 44.74%. D) 55.62%. ANSWER A
Date: September 19th, 2020
All of the following statements about liability coverage under the businessowners policy are true EXCEPT A) Liability arising out of personal and advertising injury is covered as part of the insuring agreement. B) Medical payments coverage is provided. C) Employees acting within the scope of their employment are excluded from coverage. D) Coverage is included […]
Date: September 19th, 2020
