Finance

Profit maximization does not adequately describe the goal of the firm

Profit maximization does not adequately describe the goal of the firm because: A) profit maximization does not require the consideration of risk. B) profit maximization often has a short-term focus. C) maximization of dividend payout ratio is a better description of the goal of the firm. D) Both A and B     ANSWER D

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Date: September 19th, 2020

Which of the following statements about shopping for auto insurance is

Which of the following statements about shopping for auto insurance is true? A) Adequate physical damage insurance on your auto is the most important consideration. B) Consideration should be given to dropping liability coverage if you drive an older car with a low market value. C) To obtain the lowest premium, an applicant should review […]

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Date: September 19th, 2020

Bill was severely injured by an uninsured driver. Bill did not purchas

Bill was severely injured by an uninsured driver. Bill did not purchase uninsured motorists coverage, and the other driver, although held liable, could not pay the damages awarded. After exhausting other sources of recovery, Bill learned that his state is one of a few states that has a special fund to compensate innocent accident victims. […]

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Date: September 19th, 2020

A state law that requires individuals who have been involved in an aut

A state law that requires individuals who have been involved in an auto accident or who have been convicted for certain vehicle-related offenses to demonstrate the ability to pay liability claims up to a specified dollar amount is called a(n) A) financial responsibility law. B) compulsory insurance law. C) unsatisfied judgment fund law. D) “no […]

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Date: September 19th, 2020

Which of the following statements about joint underwriting association

Which of the following statements about joint underwriting associations for insuring high-risk drivers is (are) true? I. Underwriting losses are proportionately shared by all auto insurers based on premiums written in the state. II. Each company participating in a joint underwriting association sets it own rates. A) I only B) II only C) both I […]

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Date: September 19th, 2020

Which of the following statements about unsatisfied judgment funds is

Which of the following statements about unsatisfied judgment funds is (are) true? I. An accident victim must obtain a judgment against the motorist who caused an accident and must show the judgment cannot be collected. II. The major disadvantage is that the negligent uninsured motorist is relieved of legal liability. A) I only B) II […]

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Date: September 19th, 2020

Under which type of automobile insurance arrangement are all automobil

Under which type of automobile insurance arrangement are all automobile insurers in a state assigned their proportionate share of high-risk drivers based on the total volume of automobile business written in the state? A) automobile insurance plan B) unsatisfied judgment fund C) reinsurance facility D) specialty automobile plan     ANSWER Answer: A

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Date: September 19th, 2020