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 […]
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) […]
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 […]
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 […]
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 […]
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
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
New Jersey’s dollar-a-day auto insurance coverage is limited to A) elderly individuals. B) Medicaid recipients. C) drivers under age 25. D) high-risk drivers. ANSWER Answer: B
John won the lottery on Monday and can take either $50,000 per year for 20 years, or $500,000 today. Bill won the same lottery on Tuesday and has the same options for receiving the cash. A well respected financial advisor is hired by both John and Bill. The advisor recommends that John take the $50,000 […]
Short-term United States Treasury bills are widely used as proxies for risk-free assets, yet the returns on these T-bills are consistently greater than zero. Is this consistent with the concept of a risk-return trade-off? What will be an ideal response? ANSWER Yes. Investors also require a return for delaying consumption as well as […]
