Which of the following perils is not included in the causes-of-loss basic form of the ISO commercial package policy? A) fire B) lightning C) explosion D) flood ANSWER Answer: D
Date: September 19th, 2020
Financial managers should consider taking ________ financial risk when operating risk is high, but may consider taking ________ financial risk when operating risk is low. A) less; less B) less; more C) more; more D) more; less ANSWER B
Date: September 19th, 2020
On-The-Level Manufacturing buys materials on credit at the start of the month and pays in 60 days. They also sell on credit, bill customers at the beginning of the month, and receive payment 30 days later. Using Table 6.2, what is the net cash flow from purchases and sales for the month of February? A) […]
Date: September 19th, 2020
Which of the following statements about the causes-of-loss special form of the ISO commercial package policy is (are) true? I. The causes-of-loss special form provides open perils coverage and insures against direct physical loss. II. The causes-of-loss special form excludes loss caused by earthquake. A) I only B) II only C) both I and II […]
Date: September 19th, 2020
The ability to analyze the company’s strengths and weaknesses is a fundamental concept that a nonfinancial manager should understand in order to: A) better assess the current environment in which the firm operates. B) better assess future financing requirements. C) better understand the role of capital markets in raising long-term funds. D) better measure and […]
Date: September 19th, 2020
All of the following are extensions of coverage under the building and personal property coverage form EXCEPT A) newly acquired or constructed property. B) valuable papers and records. C) personal property temporarily off the premises. D) currency and securities. ANSWER Answer: D
Date: September 19th, 2020
A security with a beta of one has a required rate of return equal to the overall market rate of return. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
One of the additional coverages under the building and personal property coverage form is “increased cost of construction.” The coverage is payable if A) a skilled artisan is needed to duplicate the construction of the damaged property. B) a labor strike or materials shortage increases construction costs. C) an ordinance or building code increases the […]
Date: September 19th, 2020
An understanding of how the company’s cost of capital is determined is one of the fundamental concepts that a nonfinancial manager should understand in order to: A) better assess the current environment in which the firm operates. B) better assess future financing requirements. C) better understand the role of capital markets in raising long-term funds. […]
Date: September 19th, 2020
________ is measured by the proportional amount of debt in the firm’s capital structure. A) Relative risk B) Business risk C) Operating risk D) Financial risk ANSWER D
Date: September 19th, 2020
