All of the following statements about inland marine forms are true EXCEPT A) A mail coverage form covers securities in transit by first-class mail, registered or certified mail, or express mail. B) A commercial articles coverage form is used to insure photographic equipment and musical instruments. C) A jewelers block coverage form is used by […]
A commitment fee is A) paid by investors to guarantee that a company will borrow from them. B) an amount paid by an investment banker to ensure the sale of securities. C) paid by bondholders to secure the right to convert bonds into common stock. D) an amount paid on the unused portion of a […]
Beta is a measurement of the relationship between a security’s returns and the general market’s returns. Indicate whether the statement is true or false ANSWER TRUE
Renee is risk manager of XYZ Company. She purchased a Commercial Package Policy for her company and added one optional coverage. This option suspends the coinsurance clause and substitutes a new agreement covering any loss in the same proportion that the limit of insurance purchased bears to a value specified in the declarations. This provision […]
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. […]
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. […]
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
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. […]
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
Based on the information in Table 4-2, the acid-test ratio is A) 2.15. B) 1.39. C) 1.33. D) 1.17. ANSWER D
