If the optional replacement cost coverage provision is not selected, how are losses settled under the building and personal property (BPP) coverage form? A) market value B) original purchase price C) actual cash value D) book value ANSWER Answer: C
Date: September 19th, 2020
Which of the following categories of owners enjoy limited liability? A) all partners in a limited partnership B) in a partnership, only the general partners C) common shareholders of a corporation D) only B and C above ANSWER C
Date: September 19th, 2020
Which ocean marine coverage provides comprehensive liability insurance for property damage caused by the ship to piers and docks, damage to the ship’s cargo, and injury to the passengers or crew? A) collision liability clause B) hull insurance C) freight insurance D) protection and indemnity insurance ANSWER Answer: D
Date: September 19th, 2020
John is risk manager of Alpha-2-Omega Company. John wants coverage for “direct physical loss” (“open perils” coverage) under the business and personal property (BPP) coverage form. Which causes-of-loss form should he select? A) special form B) basic form C) standard form D) broad form ANSWER Answer: A
Date: September 19th, 2020
Which of the following statements concerning terrorism insurance is (are) true? I. Terrorism insurance covers direct physical damage to the insured’s property resulting from an act of terrorism. II. Terrorism insurance and be added through an endorsement to the commercial property insurance policy or purchased as a separate, stand-alone policy. A) I only B) II […]
Date: September 19th, 2020
Depending on the firm’s current capital structure, as well as the capital structure following today’s financing decision, the firm may be implicitly deciding on future financing as well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The exterior walls, the roof, and the plumbing, heating and air conditioning systems of a residential condominium can be insured through the purchase of which of the following forms? I. Condominium association coverage form II. Condominium commercial unit-owners coverage form A) I only B) II only C) both I and II D) neither I nor […]
Date: September 19th, 2020
You borrow $25,000 to be repaid in 12 monthly installments of $2,292.00. The annual interest rate is closest to A) 24 percent. B) 12 percent. C) 1.5 percent. D) 18 percent. ANSWER D
Date: September 19th, 2020
Pro forma financial statements may be valuable for which of the following reasons? A) To help us estimate how profitable a firm is expected to be B) To help determine if and how much debt financing is required C) To help banks determine if firms are likely to meet lending standards D) All of the […]
Date: September 19th, 2020
Based on the information in Table 4-2, and assuming the company’s stock price is $50 per share, the P/E ratio is A) 24.44. B) 27.50. C) 10.89. D) 14.33. ANSWER C
Date: September 19th, 2020
