Finance

A few states have dual automobile insurance systems. A motorist can pa

A few states have dual automobile insurance systems. A motorist can pay a higher premium and retain the right to sue under the tort system, or pay a lower premium and be covered under the state’s no-fault law. This dual system is called a A) pure no-fault plan. B) modified no-fault plan. C) “no pay, […]

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Date: September 19th, 2020

If managers are making decisions to maximize shareholder wealth, then

If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should: A) positively affect profits. B) increase the market value of the firm’s common stock. C) either increase or have no effect on the value of the firm’s common stock. D) Accomplish all of the above.   […]

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Date: September 19th, 2020

Which of the following statements about the factors affecting automobi

Which of the following statements about the factors affecting automobile insurance rates is true? A) The cost of collision coverage increases as a car gets older. B) Because of high speeds in rural areas, rural drivers tend to pay more for auto insurance than city drivers pay for auto insurance. C) Young unmarried male drivers […]

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Date: September 19th, 2020

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

Arguments often used against no-fault automobile insurance laws includ

Arguments often used against no-fault automobile insurance laws include all of the following EXCEPT A) It is often difficult to determine which driver was negligent when a multiple-vehicle accident occurs. B) Many injured persons will not be compensated for their full losses because payments for pain and suffering will be eliminated. C) The defects of […]

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Date: September 19th, 2020

Which of the following statements best represents the “Agency Problem”

Which of the following statements best represents the “Agency Problem”? A) The agency problem may interfere with the implementation of maximizing shareholder wealth. B) Managers might attempt to benefit themselves in terms of salary and perquisites at the expense of shareholders. C) The agency problem results from the separation of management and the ownership of […]

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Date: September 19th, 2020