The building and personal property coverage form provides several optional coverages. Under one optional coverage, no deduction is taken for depreciation when settling a covered loss. This optional coverage is called A) extra expense. B) agreed value. C) replacement cost. D) inflation guard. ANSWER Answer: C
Date: September 19th, 2020
Which of the following statements about the provisions of the building and personal property coverage form is (are) true? I. A separate deductible must be satisfied for each building damaged in the same occurrence. II. Under the replacement cost option, there is no deduction for depreciation. A) I only B) II only C) both I […]
Date: September 19th, 2020
Which of the following statements about the extra expense coverage form is (are) true? I. It provides coverage for the increased cost that must be paid to continue operations during a period of restoration. II. It provides coverage for lost business income if a key customer or key supplier experiences a loss. A) I only […]
Date: September 19th, 2020
Based on the information in Table 4-1, the total asset turnover ratio is A) 1.41. B) 1.11. C) 2.33. D) 4.45. ANSWER B
Date: September 19th, 2020
Juanita has the following three ratios: 1. debt service coverage = 2.5, 2. debt ratio = 0.5, and 3 . liquidity ratio = 0.8. We can say that Juanita has A) poor solvency and poor liquidity. B) strong solvency and strong liquidity. C) strong liquidity but poor solvency. D) strong solvency but poor liquidity. […]
Date: September 19th, 2020
A well-diversified portfolio typically has systematic risk equal to about 40% of the portfolio’s total risk. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Advantages of private placements do NOT include which of the following? A) lower flotation costs B) funds which are available more quickly than through a public offering C) more financing flexibility D) investor protection through extensive regulation ANSWER D
Date: September 19th, 2020
S-type corporations have all of the following advantages EXCEPT A) distributions are taxed twice, similar to corporate dividend payments. B) they are taxed as partnerships. C) all owners must be people, no corporations. D) the owners have limited liability. ANSWER A
Date: September 19th, 2020
Your grandparents deposit $2,000 each year on your birthday, starting the day you are born, in an account that pays 7% interest compounded annually. How much will you have in the account on your 21st birthday, just after your grandparents make their deposit? A) $79,640 B) $101,802 C) $98,016 D) $86,058 ANSWER C
Date: September 19th, 2020
Which of the following statements about the building and personal property coverage form is (are) true? I. A limited amount of coverage is provided for pollutant cleanup and removal at the described premises if the release or discharge of the pollutant results from a covered cause of loss. II. Fire department service charges are specifically […]
Date: September 19th, 2020
