A group of investment bankers organized to distribute large securities issues is known as a syndicate. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following goals are in the best long-term interest of shareholders? A) Profit maximization B) Risk minimization C) Maximizing the market value of the existing shareholders’ common stock D) Maximizing sales revenue ANSWER C
Date: September 19th, 2020
The manager of Golden Ray Corporation receives a bonus if company profits exceed $1,000,000 this year. During the final week of the year, the manager changes an accounting policy that will increase reported profits from $950,000 to $1,025,000, triggering his bonus. The change in profits of $75,000 will reverse itself in the next year, and […]
Date: September 19th, 2020
Some insurance companies intentionally seek to insure motorists with poor driving records. These insurers commonly insure drivers who have been turned-down or canceled by other insurers. What name is given to insurers who provide coverage to these higher-than-average risks drivers? A) alien insurers B) guaranty fund insurers C) specialty insurers D) surplus lines insurers […]
Date: September 19th, 2020
Some states do not require an individual to demonstrate the ability to pay an automobile liability claim until after the individual has been involved in an accident or has been convicted for certain offenses, such as driving under the influence of alcohol. This approach to dealing with compensating innocent auto accident victims is called a(n) […]
Date: September 19th, 2020
Some insurers are experimenting with the use of an electronic device that can be installed in a vehicle to track driving behavior. The insurers then use the information to help determine the appropriate auto insurance premium to charge. Such devices are called A) data recorders. B) radar detectors. C) original equipment manufacturer parts. D) thresholds […]
Date: September 19th, 2020
Asset efficiency ratios for Fischer, Inc. are given in the table below. Based on this information, Fischer, Inc.’s fixed asset turnover ratio is likely to be ________. Fischer, Inc. Peer Group Total Asset Turnover 1.58X 2.05X Accounts Receivable Turnover 17.55X 14.35X Inventory Turnover 6.34X 5.22X Fixed Asset Turnover ????? 3.50X A) negative B) less than […]
Date: September 19th, 2020
Which of the following statements is (are) true regarding renters insurance? I. Renters insurance is needed if you rent a house, but is not needed if you rent an apartment. II. The ISO renter’s policy provides open perils (“all-risks”) coverage on the insured’s personal property. A) I only B) II only C) both I and […]
Date: September 19th, 2020
Which homeowners policy is designed for the tenants of a rented premises? A) Homeowners 2 B) Homeowners 4 C) Homeowners 6 D) Homeowners 8 ANSWER Answer: B
Date: September 19th, 2020
Managers often begin with an estimate of ________ when beginning to develop pro forma financial statements. A) net income B) sales C) assets D) equity ANSWER B
Date: September 19th, 2020
