Which of the following are characteristics of a limited partnership? A) General partners have unlimited liability. B) There must be one or more general partners. C) Limited partners may not participate in the management of the limited partnership. D) all of the above ANSWER D
Date: September 19th, 2020
Your firm’s sales are estimated to decrease by 10% in the next year. However, soon after the beginning of the year it becomes apparent that the reduction in sales is more likely to be 20%. If your cost of good sold consists of only fixed expenses, which of the following situations would you expect to […]
Date: September 19th, 2020
You sell valuable artifacts from your household estate for $200,000 and want to use the money to supplement your retirement. You receive the money on your 60th birthday, the day you retire. You want to withdraw equal amounts at the end of each of the next 25 years. What constant amount can you withdraw each […]
Date: September 19th, 2020
The Commercial General Liability (CGL) Policy covers liability for which of the following loss exposures? I. Bodily injury of an employee of the insured arising out of and in the course of employment II. Bodily injury of a customer injured by a defective product manufactured by the insured A) I only B) II only C) […]
Date: September 19th, 2020
Racing Horse Corporation reported net income for 2010 of $200,000, sales of $540,000, expenses (excluding depreciation) of $180,000, and depreciation expense of $60,000. The company’s accounts receivable balance increased by $40,000 during the year and its accounts payable balance remained the same. The company’s change in cash for the year is estimated to be A) […]
Date: September 19th, 2020
Holding cash in a temporary “parking place” is associated with which cash motive? A) Undertaking transactions B) Holding an emergency reserve C) Holding a short-term store of value D) Paying off credit ANSWER C
Date: September 19th, 2020
Based on the information in Table 4-2, the return on equity is A) 16.66%. B) 18.47%. C) 15.65%. D) 19.33%. ANSWER C
Date: September 19th, 2020
What are the five key methods by which securities are distributed to final investors? What will be an ideal response? ANSWER A Negotiated Purchase: In a negotiated underwriting, the firm that needs funds makes contact with an investment banker, and deliberations concerning the new issue begin. If all goes well, a method is […]
Date: September 19th, 2020
Which of the following statements about the ISO businessowners policy is true? A) The current form is written on a named-perils basis, but an “open-perils” (all risks) endorsement is available. B) It provides business income and extra expense coverage as an additional coverage. C) The policy covers business personal property but does not cover buildings. […]
Date: September 19th, 2020
Given the following financial statements for ARGON Corporation, and assuming that ARGON paid a common dividend of $80,000 in 2010, what is the company’s financing cash flow for 2010? Income Statement Balance Sheet Year Ended 12/31/10 12/31/2010 12/31/2 Sales $1,300,000 Current Assets $50,000 $45 Cost of Goods Sold 750,000 Gross Fixed Assets 880,000 650 Operating […]
Date: September 19th, 2020
