Individuals renting out rooms in their home for overnight stays, individuals jointly owing a car with other owners, and individuals who give rides to people who call or text them are creating “new” liability exposures for insurers. The social change that creates these new liability exposures is called A) the millennial generation. B) the baby […]
Common-sized income statements are used to compare companies that have the same amount of revenues. Indicate whether the statement is true or false ANSWER FALSE
When making financial decisions, managers should always look at marginal, or incremental cash flows. Indicate whether the statement is true or false ANSWER TRUE
Flotation costs are typically greater in the secondary market than in the primary market. Indicate whether the statement is true or false ANSWER FALSE
Unmanned aircraft systems are gaining in popularity. These systems are creating new liability exposures. Unmanned aircraft systems are also known as A) rockets. B) hovercraft. C) ultralights. D) drones. ANSWER Answer: D
If the stock market is efficient, then investors do not need to read the Wall Street Journal or research companies before they select which stocks to buy because market prices already reflect all publicly available information. Indicate whether the statement is true or false ANSWER FALSE
On the basis of number of shares traded, more stocks are traded over the counter than on organized exchanges. Indicate whether the statement is true or false ANSWER TRUE
Common-sized income statements restate the numbers in the income statement as a percentage of sales to assist in the comparison of a firm’s financial performance across time and with competitors. Indicate whether the statement is true or false ANSWER TRUE
An investment project is acceptable if the total cash received over the life of the project exceeds the total cash spent over the life of the project. Indicate whether the statement is true or false ANSWER FALSE
Stocks listed on the New York Stock Exchange must be traded exclusively on the NYSE in order to maintain the high standards set by the exchange. Indicate whether the statement is true or false ANSWER FALSE
