Because key variables are often related rather than isolated we often change our estimates for selected variables simultaneously when examining pro forma statements. We call this type of activity: A) ratio analysis. B) scenario analysis. C) sensitivity analysis. D) form analysis. ANSWER B
Date: September 19th, 2020
The characteristic line for any well-diversified portfolio is horizontal. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A navigation error caused a cargo ship to run aground on a reef. The ship, valued at $1.5 million, was carrying $1.5 million in grain and $1.5 in electronic devices. The ship sustained a $150,000 physical damage loss. If this loss is a “particular average” loss, how will the loss be settled? A) The owners […]
Date: September 19th, 2020
Based on the information in Table 4-2, the debt ratio is A) 28.12%. B) 42.03%. C) 45.69%. D) 34.74%. ANSWER C
Date: September 19th, 2020
Optimal Capital Structure MAXIMIZES the firm’s overall cost of capital. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The Sarbanes-Oxley Act, or SOX A) holds corporate advisors strictly accountable in a legal sense for any instances of misconduct. B) pretexts the interests of shareholders by providing greater protection against accounting fraud and financial misconduct. C) reduces the cost of financial reporting by standardizing reporting requirements. D) accomplishes both A and B. […]
Date: September 19th, 2020
There are a number of implied warranties in ocean marine insurance. One implied warranty is that the vessel is properly constructed and maintained, and that it is properly equipped for the voyage to be undertaken. This implied warranty is the warranty of A) seaworthiness. B) barratry. C) no deviation from planned course. D) legal purpose. […]
Date: September 19th, 2020
All of the following are considered to be instrumentalities of transportation and communication for purposes of inland marine insurance EXCEPT A) trains. B) tunnels. C) transmission lines. D) television towers. ANSWER Answer: A
Date: September 19th, 2020
Which of the following is NOT true for a limited partnership? A) Limited partners may sell their interest in the company. B) It has limited liability for its owners. C) One general partner must exist who has unlimited liability. D) Only the name of general partners can appear in the name of the firm. […]
Date: September 19th, 2020
Each functional area is, in some way, involved in the generation or consumption of cash. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
