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 […]
Date: September 19th, 2020
Issuing debt rather than equity will automatically increase a firm’s EPS and EBIT. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
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. […]
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
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
Date: September 19th, 2020
Issuing equity automatically hurts existing shareholders. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Within the financial markets, explain what we mean by “private placements” and name the advantages and disadvantages. What will be an ideal response? ANSWER Private placements are an alternative to the sale of securities to the public or to a restricted group of investors through a privileged subscription. Any type of security can […]
Date: September 19th, 2020
Equity provides more financial flexibility for a firm than debt. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The ________ measure a firm’s performance over a specified period of time whereas a ________ provides a snapshot of the firm as of a specific date. A) income and balance sheets; cash flow statement B) balance sheet and cash flow statement; income statement C) income and cash flow statements; balance sheet D) None of the […]
Date: September 19th, 2020
