Which of the following statements about types of property covered under the Personal Articles Floater is true? A) Golfer’s equipment is covered only in the United States. B) Furs are covered on a blanket basis without the necessity to schedule individual items. C) A higher premium must be paid to insure musical instruments if they […]
All of the following are considered floods under the federal flood insurance program EXCEPT A) the overflow of tidal waters. B) the accumulation of surface water after a heavy rain. C) a mudslide caused by an accumulation of water after a heavy rain. D) the discharge of water from a home appliance, such as a […]
The current ratio of a firm would equal its quick ratio whenever A) the firm’s current ratio is equal to one. B) the firm’s inventory is equal to its current liabilities. C) the firm has no inventory. D) the firm’s inventory is equal to its other current assets. ANSWER C
A limited liability company (LLC) is taxed like a partnership but provides limited liability for its owners, similar to a corporation. Indicate whether the statement is true or false ANSWER TRUE
The investment banker performs what three basic functions? A) underwriting, advising, and price-pegging B) underwriting, distributing, and regulating C) underwriting, distributing, and negotiating D) underwriting, distributing, and advising ANSWER D
Which of the following statements about mobile home insurance is (are) true? I. Coverage for the mobile home may be written on either a replacement cost basis or an actual cash value basis, depending on how much the mobile home has depreciated. II. An additional coverage pays, up to a specified dollar limit, for the […]
Which of the following statements about the eligibility requirements for insuring mobile homes by endorsing a homeowners policy is (are) true? I. The mobile home must be designed for year-round living. II. The mobile home must be located in a fenced area with security guards. A) I only B) II only C) both I and […]
The future value of an annuity due is greater than the future value of an otherwise identical ordinary annuity. Indicate whether the statement is true or false ANSWER TRUE
If a firm were simply concerned with minimizing costs of incremental financing, then the straightforward choice would be: A) debt. B) new equity. C) retained earnings. D) half debt and half equity financing. ANSWER A
If managers are making decisions to maximize shareholder wealth, they are primarily making decisions that: A) maximize sales revenue. B) minimize risk. C) maximization of the market value of shareholders’ common stock. D) reduce the costs of borrowing. ANSWER C
