Of the following different types of securities, which is typically considered most risky? A) common stocks of small companies B) long-term government bonds C) common stocks of large companies D) long-term corporate bonds ANSWER A
Date: September 19th, 2020
Cash flows and profits are synonymous, in other words, higher cash flows equal higher profits Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Activities of the investment banker include A) assuming the risk of selling a security issue. B) providing advice to firms issuing securities. C) selling new securities to the ultimate investors. D) all of the above ANSWER D
Date: September 19th, 2020
A general partnership, unlike a limited partnership, is an entity that legally functions separate and apart from its owners. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Investment A has an expected return of 15% per year, while Investment B has an expected return of 12% per year. A rational investor will choose A) Investment A if A and B are of equal risk. B) Investment A because of the higher expected return. C) Investment B because a lower return means lower […]
Date: September 19th, 2020
Which of the following losses would be covered under the medical payments coverage of the Homeowners 3 policy? A) injuries to another person arising out of the insured’s negligent operation of an automobile B) medical payments resulting from the transmission of a communicable disease C) injury to a resident employee at the insured’s home D) […]
Date: September 19th, 2020
Spandra Electronics wants to raise money by selling stock. After talking to several investment banking firms, Spandra decides to hire Goldman Sachs to sell 5 million shares of its common stock. Goldman sells 4.5 million shares and returns the rest to Spandra. This is an example of A) a competitive bid purchase. B) a privileged […]
Date: September 19th, 2020
Tom and Tammy Evans were ready to purchase a home. The home was to serve as collateral for their mortgage loan. Two insurers declined to insure the home, citing “an adverse CLUE report.” Why would an insurer reject a homeowners insurance application because of an adverse CLUE report? A) because the previous owner had defaulted […]
Date: September 19th, 2020
The sole proprietorship is for all practical purposes the absence of any formal legal business structure. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
When repaying an amortized loan, the interest payments increase over time due to the compounding process. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
