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
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
Some fundamental concepts that nonfinancial managers need to understand include: A) the ability to assess day-to-day cash management. B) the ability to assess future financing requirements. C) the ability to understand the role of capital markets in raising long-term funds. D) All of the above. ANSWER D
Date: September 19th, 2020
On an accrual basis income statement, revenues equal cash receipts and expenses equal cash expenditures. Indicate whether the statement is true or false ANSWER FALSE
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
