The market rewards the patient investor, for between 1926 and 2008, there has never been a time when an investor lost money if she held an all-stock portfolio for ten years. Indicate whether the statement is true or false ANSWER TRUE
Financial managers work with the managers from the other functional areas of business. For example: When the financial manager provides funds for activities such as the development of products or services, they are probably working with which functional area? A) Human Resourses B) Information Technology C) Marketing D) Operations ANSWER D
Based on the information in Table 4-2, the times interest earned ratio is A) 4.88. B) 8.65. C) 11.48. D) 5.25. ANSWER B
Which of the following losses would be covered under a Commercial General Liability Policy that has no endorsements? I. The named insured rented a building and an employee of the named insured negligently started a fire at the rented building. II. The cost to recall defective products A) I only B) II only C) both […]
Issuing debt rather than equity will automatically increase a firm’s EPS and EBIT. Indicate whether the statement is true or false ANSWER FALSE
In addition to the named insured, all of the following are insureds under the Commercial General Liability Policy EXCEPT A) suppliers of products to the named insured’s business. B) the insured’s employees while acting within the scope of their employment. C) the manager of the insured’s real estate. D) partners of the named insured. […]
Which of the following statements about workers compensation insurance is (are) true? I. Under the workers compensation part of the policy, the insurer agrees to pay the benefits required by the workers compensation law of any state listed in the policy declarations. II. The employers liability part of the policy provides workers compensation benefits when […]
Which of the following statements regarding employer liability insurance under the workers compensation insurance coverage form is (are) true? I. Employer liability insurance covers an employee injury that occurs on the job but may not be considered work-related. II. If an injured employee sues a negligent third-party, and the third-party sues the employer for contributory […]
The portfolio beta is simply the sum of the betas of the individual stocks in the portfolio. Indicate whether the statement is true or false ANSWER FALSE
Issuing equity automatically hurts existing shareholders. Indicate whether the statement is true or false ANSWER FALSE