Shauna purchased a condominium unit. Which homeowners policy is specially designed for condominium unit owners? A) HO-2 B) HO-3 C) HO-4 D) HO-6 ANSWER Answer: D
Date: September 19th, 2020
All of the following are duties of the mortgagee under the standard mortgage clause EXCEPT A) to reimburse the insurer for any loss payments. B) to notify the insurer of any change in ownership of the property of which the mortgagee is aware. C) to provide a proof of loss form if the insured fails […]
Date: September 19th, 2020
Betty’s personal property is insured for $100,000 under her Homeowners 3 policy. If she usually keeps some personal property at a mountain cabin that she owns, how much coverage for this property is available under her homeowners policy? A) $10,000 B) $20,000 C) $40,000 D) $50,000 ANSWER Answer: A
Date: September 19th, 2020
Williams Inc. has a current ratio equal to 3, a quick ratio equal to 1.8, and total current assets of $6 million. Williams’ inventory balance is A) $2,400,000. B) $4,000,000. C) $4,800,000. D) $2,000,000. ANSWER A
Date: September 19th, 2020
Only individual investors participate in public offerings, while institutional investors participate in private placements. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
You are going to invest all of your funds in one of three projects with the following distribution of possible returns: PROJECT 1 PROJECT 2 Probability Return Standard Deviation Beta Probability Return Standard Deviation Beta 50% Chance 22% 12% 1.1 30% Chance 36% 19.5% 1.0 50% Chance -4% 40% Chance 10.5% 30% Chance -20% PROJECT […]
Date: September 19th, 2020
Cal is renting an apartment. Which homeowners policy is specially designed to insure renters? A) HO-2 B) HO-3 C) HO-4 D) HO-6 ANSWER Answer: C
Date: September 19th, 2020
Which of the following is NOT a potential source of outside financing for a corporation? A) new bank loans B) new long-term debt C) sale of new equity D) additions to retained earnings ANSWER D
Date: September 19th, 2020
Wheeler Corporation had retained earnings as of 12/31/10 of $15 million. During 2011, Wheeler’s net income was $7 million. The retained earnings balance at the end of 2011 was equal to $20 million. Therefore, A) Wheeler paid a dividend in 2010 of $5 million. B) Wheeler purchased treasury stock in 2010 for $2 million. C) […]
Date: September 19th, 2020
David has a Homeowners 3 policy that provides $280,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a roof with a replacement value of $16,000 but an actual cash value of $10,000 is destroyed in a fire? A) $10,000 B) $12,000 […]
Date: September 19th, 2020
