A limited partnership provides limited liability to A) only to limited partners who do not participate in the management of the business. B) all partners. C) only limited partners responsible for day to day management of the firm. D) all general partners. ANSWER A
Date: September 19th, 2020
Financial statement analysis 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 the future financing requirements. C) better understand the role of capital markets in raising long-term funds. D) better measure and create value for […]
Date: September 19th, 2020
You decide to borrow $250,000 to build a new home. The bank charges an interest rate of 8% compounded monthly. If you pay back the loan over 30 years, what will your monthly payments be (rounded to the nearest dollar)? A) $1,237 B) $1,123 C) $1,687 D) $1,834 ANSWER D
Date: September 19th, 2020
Which of the following is (are) included in the common declarations page of a commercial package policy? I. A description of the insured property II. A listing of the causes-of-loss that are covered by the policy A) I only B) II only C) both I and II D) neither I nor II ANSWER […]
Date: September 19th, 2020
A company with negative net income will also have negative operating cash flow. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
You deposit $5,000 per year at the end of each of the next 25 years into an account that pays 8% compounded annually. How much could you withdraw at the end of each of the 20 years following your last deposit if all withdrawals are the same dollar amount? (The twenty-fifth and last deposit is […]
Date: September 19th, 2020
Assume you are to receive a 10-year annuity with annual payments of $1000. The first payment will be received at the end of Year 1, and the last payment will be received at the end of Year 10. You will invest each payment in an account that pays 9 percent compounded annually. Although the annuity […]
Date: September 19th, 2020
Andrea purchased an auto insurance policy with bodily injury liability limits of 250/500 ($250,000/$500,000). She also purchased a personal umbrella policy with a $1 million limit and a $500 self-insured retention. Andrea was talking on her cell phone while driving, and her car struck and killed a pedestrian in a crosswalk. The court ordered her […]
Date: September 19th, 2020
All of the following are ISO personal umbrella liability policy exclusions EXCEPT A) liability arising out of uncompensated board service for a nonprofit organization. B) liability arising out of expected or intentional injury. C) liability arising out of business operations. D) liability arising out of operation of watercraft not covered by an underlying policy. […]
Date: September 19th, 2020
You charged $1,000 on your credit card for Christmas presents. Your credit card company charges you 26% annual interest, compounded monthly. If you make the minimum payments of $25 per month, how long will it take (to the nearest month) to pay off your balance? A) 54 months B) 40 months C) 94 months D) […]
Date: September 19th, 2020
