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
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
