The negotiated purchase is the most prevalent method of securities distribution in the private sector. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
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, […]
Date: September 19th, 2020
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. […]
Date: September 19th, 2020
As of today, the most severe economic crisis to afflict the United States economy is considered to be A) the Savings and Loan Crisis of 1978-1982. B) the Great Recession of 2007-2009. C) the Reagan Tax Law Changes of 1985. D) the Great Depression of the 1930s. ANSWER D
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
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
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
The investment banker performs three basic functions: (1 ) underwriting, (2 ) distributing, and (3 ) advising. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
How managers choose to finance the business does not affect the rate of return to shareholders because the rate of return is based on how the company uses the assets it has, not whether or not they paid for the assets with debt or equity. Indicate whether the statement is true or false […]
Date: September 19th, 2020
