Which of the following statements about the liability coverage of the Business Auto Coverage Form is (are) true? I. The insurer agrees to defend the insured and pay all legal defense costs arising out of an accident involving a covered auto. II. The insured is covered for property damage and bodily injury arising out of […]
Based on the information in Table 4-3, the average collection period is A) 27.36 days. B) 17.49 days. C) 20.53 days. D) 38.01 days. ANSWER C
Which of the following forms of business organizations provide limited liability to all its owners? A) general partnership B) corporation C) limited partnership D) both B and C ANSWER B
A regular charge account is one A) that covers a single purchase. B) that is used primarily as a shopping convenience. C) that requires an initial security deposit. D) offered only by travel and entertainment lenders, such as American Express. ANSWER B
All of the following are coverage options under the physical damage coverage in the Business Auto Coverage Form EXCEPT A) comprehensive coverage. B) specified causes-of-loss coverage. C) collision coverage. D) property damage liability coverage. ANSWER Answer: D
Investors expect to receive the highest returns from government-issued securities because the government will not default on securities that it has issued. Indicate whether the statement is true or false ANSWER FALSE
Secured credit cards are A) issued only to those who are the most credit worthy. B) issued only to corporations that have been operating for at least five years. C) useful for those who are trying to overcome a poor credit history. D) protected by an unlimited line of credit. ANSWER C
Which of the following categories of owners have limited liability? A) general partners B) sole proprietors C) shareholders of a corporation D) both A and B ANSWER C
Although the firm has many important stakeholders, the ________ are most important because they are essentially the owners of the firm. A) Shareholders B) Investment bankers C) Lenders D) Managers ANSWER A
Based on the information in Table 4-2, the inventory turnover ratio is A) 2.37 times. B) 4.43 times. C) 1.29 times. D) 2.99 times. ANSWER A
