Which of the following statements about uninsured motorists coverage is true? A) An innocent motorist must establish that the uninsured motorist is legally liable. B) The amount of coverage in most states must be at least $300,000. C) Property damage is covered in all states but bodily injury is not covered in all states. D) […]
Economic Value Added attempts to measure a firm’s economic profit rather than its accounting profit. Indicate whether the statement is true or false ANSWER TRUE
The profit and loss (income) statement is compiled on a cash basis. Indicate whether the statement is true or false ANSWER FALSE
After the Personal Auto Policy has been in force for 60 days (or is a renewal policy), all of the following are grounds for the insurer to cancel the policy EXCEPT A) nonpayment of premiums B) the insured’s license to drive is suspended C) the insurer discovers material misrepresentation by the insured in the application […]
The creation of value is driven by what factors? A) Cash flow and growth B) Growth and risk C) Profitability and growth D) Reducing risk ANSWER B Explanation: B) The primary goal of a firm is value creation, and that the creation of value is driven by two key factors: growth and risk.
Kelly was hit by a car while she was walking to the park. She incurred $750 in medical costs at a hospital emergency room. Kelly has coverage for this charge under which of her Personal Auto Policy (PAP) coverages? A) bodily injury liability B) other-than collision C) medical payments D) collision ANSWER Answer: […]
The appraisal provision in the Personal Auto Policy is used to determine the A) value of a loss payable under property damage liability. B) amount paid for a physical damage loss to the insured’s auto if the insured and insurer disagree. C) amount of auto insurance that should be purchased for an older/antique car. D) […]
Dan picked up his friend Rodney to drive to their softball game. Both Dan and Rodney have a Personal Auto Policy (PAP) with $5,000 of medical payments coverage. Dan hit a parked car, and Rodney was injured, incurring $9,000 of medical expenses. How will this claim be settled under the other insurance provision of the […]
An income statement reports the firm’s revenues and expenses for a specific period of time such as one year. Indicate whether the statement is true or false ANSWER TRUE
Name the benefits derived from the existence of stock exchanges. What will be an ideal response? ANSWER Providing a continuous market: it may be the most important function of an organized security exchange. A continuous market provides a series of continuous security prices. Establishing and publicizing fair security prices: An organized exchange permits […]
