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
When estimating a cash budget, which of the following items should the firm NOT include in the process? A) dividends B) taxes paid by the firm C) wages D) All of the above should be included ANSWER D
Date: September 19th, 2020
Which of the following statements is (are) true with regard to an unendorsed ISO Dwelling Form? I. The Dwelling forms provide theft coverage and personal liability insurance. II. The Dwelling 3 form provides broader property coverage than the Dwelling 1 form. A) I only B) II only C) both I and II D) neither I […]
Date: September 19th, 2020
Tina purchased a personal umbrella policy with a $1 million limit and a $1,000 self-insured retention. Her insurer required her to carry a $300,000 liability limit under her homeowners policy. Tina was held responsible for slandering a public official. The public official won a $100,000 judgment against Tina. The insurer that wrote Tina’s homeowners policy […]
Date: September 19th, 2020
Frank purchased a building in a run-down area of a city. When Frank was unable to obtain property insurance in the voluntary insurance market, an agent suggested that he contact a state pool created in the 1960s that makes property insurance available in riot-prone areas. The state pool the agent referred to is called a(n) […]
Date: September 19th, 2020
Which of the following are fundamental concepts that nonfinancial managers need to understand? A) How current business conditions can affect the firm’s performance. B) How to project financial statements and future investment needs. C) How capital markets work to raise long-term capital. D) All of the above. ANSWER D
Date: September 19th, 2020
Which of the following is an advantage of using private placements for debt? A) fewer and less burdensome restrictive covenants B) reduced costs from the elimination of the registration statement for the SEC, investment-banking underwriting fees and distribution costs C) lower interest costs D) the possibility of future SEC registration ANSWER B
Date: September 19th, 2020
Tina purchased a personal umbrella policy with a $1 million limit. Her insurer required her to carry liability limits of 250/500/50 under her auto insurance policy. The personal umbrella policy was written with a $1,000 self-insured retention. Tina was responsible for an auto accident in which the other driver was severely injured. The other driver’s […]
Date: September 19th, 2020
Len is considering the purchase of a home. As a home is a large investment, Len wants to make sure that there are no liens, easements, or other encumbrances preventing him from an unchallenged right to possess and enjoy his property. Len can protect this right through the purchase of A) extended coverage insurance. B) […]
Date: September 19th, 2020
Based on the information in Table 4-1, the accounts receivable turnover is A) 10.00. B) 9.50. C) 8.11. D) 11.11. ANSWER D
Date: September 19th, 2020
