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
Financial management deals with the creation and maintenance of economic value or wealth. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following accounts belongs in the equity section of a balance sheet? A) dividends B) retained earnings C) long-term debt D) cash ANSWER B
Date: September 19th, 2020
Which of the following losses would be covered under Section II of an unendorsed Homeowners 3 policy? A) The homeowner accidentally dropped a bowling ball, injuring another bowler’s foot. B) The homeowner’s nanny was injured on her day off while hiking at a state park. C) The insured slandered a city council member at a […]
Date: September 19th, 2020
