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
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
Date: September 19th, 2020
It is your 6th birthday today. You have a trust fund with $50,000 that is earning 8% per year. You expect to withdraw $30,000 per year for 7 years starting on your 22nd birthday for graduate school. How much money will be left in the trust fund after your last withdrawal (rounded to the nearest […]
Date: September 19th, 2020
Which of the following statements about the businessowners policy is (are) true? I. It is designed to meet the insurance needs of large manufacturing firms. II. It is a package policy designed to meet the basic property and liability needs of an insured in a single contract. A) I only B) II only C) both […]
Date: September 19th, 2020
The beta of a T-bill is one. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
You estimate you’ll need $200,000 per year for 25 years starting on your 65th birthday to live on during your retirement. Today is your 50th birthday and you want to make equal deposits into an account paying 9% interest per year, the first deposit today and the last deposit on your 64th birthday. How much […]
Date: September 19th, 2020
Forecasted net cash flows are the difference between forecasted cash inflows and forecasted cash outflows. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Assessing the current business environment is NOT a fundamental concept related to financial management. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
When a firm issues debt instead of equity to finance a new project, A) bondholders take on additional voting control as a result of their ownership of the debt instruments. B) shareholders share voting rights with bondholders. C) shareholders maintain voting control of the company but may face additional restrictive covenants found in the bond […]
Date: September 19th, 2020
