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. […]
The generation of cash budgets and and pro forma financial statements are equivalent ways of forecasting financial needs. Indicate whether the statement is true or false ANSWER TRUE
Which of the following statements describes a Difference in Conditions (DIC) Policy? A) It is a type of commercial umbrella liability policy. B) It is an open perils policy that covers perils not insured by basic property insurance contracts. C) It is designed to cover indirect losses for which the insured has direct damage coverage. […]
Portfolio performance is determined mainly by stock selection and market timing, with less emphasis on asset allocation. Indicate whether the statement is true or false ANSWER FALSE
Which of the following is an advantage of the sole proprietorship? A) limited liability for its owners B) no significant legal requirements for starting the business C) double taxation for its owners D) easily transferred ownership ANSWER B
The Sarbanes-Oxley Act of 2002 holds all of the following groups strictly accountable in a legal sense for any instances of misconduct EXCEPT A) investors. B) outside members of the board of directors. C) company officers. D) lawyers. ANSWER A
