Based on the information in Table 4-1, the operating profit margin is A) 37.5%. B) 47.5%. C) 26.4%. D) 32.8%. ANSWER B
Date: September 19th, 2020
What is the effect of the optional agreed value provision in the building and personal property coverage form? A) It provides replacement cost coverage. B) It increases insured values along with inflation. C) It suspends the coinsurance clause. D) It reduces the deductible to $50. ANSWER Answer: C
Date: September 19th, 2020
Bill, a local inventor, developed a diet pill that he believes will solve the obesity problem in the United States. Bill wants to create a new company, 50% owned by Bill and 50% owned by a major drug company. Although he believes the pills are safe, Bill is concerned about liability if someone becomes sick […]
Date: September 19th, 2020
What financial statement explains the changes that took place in the firm’s cash balance over a period? A) income statement B) balance sheet C) statement of cash flow D) reconciliation of free cash flow ANSWER C
Date: September 19th, 2020
A 65 year-old man is retiring and can take either $500,000 in cash or an ordinary annuity that promises to pay him $50,000 per year for as long as he lives. Which of the following statements is MOST correct? A) The higher the interest rate, the more likely the man will prefer the $500,000 lump […]
Date: September 19th, 2020
Which of the following is covered under the building and personal property coverage form? A) the insured’s stock and inventory when located inside the insured building B) vehicles owned by the insured C) aircraft and watercraft owned by the insured D) a manufacturing building owned by a key customer or key supplier of the insured. […]
Date: September 19th, 2020
All of the following business organizations provide limited liability to their owners EXCEPT A) limited liability company. B) general partnership. C) S-type corporation. D) corporation. ANSWER B
Date: September 19th, 2020
________ variability in revenues and a/an ________ operating margin mean higher business risk. A) Greater; increasing B) Lesser; declining C) Greater; declining D) None of the above. ANSWER C
Date: September 19th, 2020
Which of the following items is (are) contained in the common policy conditions page of the commercial package policy? I. A description of the property that is insured. II. A provision describing the insurer’s right to audit the insured’s books and records A) I only B) II only C) both I and II D) neither […]
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
