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 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
Which of the following statements about physicians, surgeons, and dentists liability insurance is true? A) Liability coverage is restricted to accidental acts. B) The policy eliminates the need for medical practitioners to purchase general liability insurance. C) The insurer must obtain the consent of medical practitioners before the insurer can settle claims. D) The policy […]
Date: September 19th, 2020
Which of the following statements about errors and omissions insurance is (are) true? I. It is purchased by professionals to protect against claims arising for negligent acts, errors, and omissions. II. It is designed to meet the needs of stock brokers, attorneys, engineers, architects and other professionals who give advice to clients. A) I only […]
Date: September 19th, 2020
