Question 1

What is insurance designed to protect top corporate management who can be the target of malpractice lawsuits?

Accepted Answer

A)  professional liability insurance 
B)  lawsuit insurance 
C)  key person life insurance 
D)  business interruption insurance 
A)  professional liability insurance 
B)  lawsuit insurance 
C)  key person life insurance 
D)  business interruption insurance

Question 2

Dividends are best described by which of the following?

Accepted Answer

A)  They are annual payments on bonds. 
B)  They are the earnings of the corporation. 
C)  They are payments to the shareholders from company earnings. 
D)  They are guaranteed payments to the common shareholders. 
A)  They are annual payments on bonds. 
B)  They are the earnings of the corporation. 
C)  They are payments to the shareholders from company earnings. 
D)  They are guaranteed payments to the common shareholders.

Question 3

Financial managers are best described by which of the following?

Accepted Answer

A)  They focus on profit maximization. 
B)  They track how money is flowing into and out of the company. 
C)  They play such an important organizational role that they often are called operations managers. 
D)  They are not typically involved in long-term strategic planning. 
A)  They focus on profit maximization. 
B)  They track how money is flowing into and out of the company. 
C)  They play such an important organizational role that they often are called operations managers. 
D)  They are not typically involved in long-term strategic planning.

Question 4

For a risk to be insurable, which of the following criteria must it meet?

Accepted Answer

A)  The loss must be financially measurable. 
B)  The potential loss should be insignificant. 
C)  The loss must be under the control of the insured. 
D)  There must be very few exposures to the peril in question. 
A)  The loss must be financially measurable. 
B)  The potential loss should be insignificant. 
C)  The loss must be under the control of the insured. 
D)  There must be very few exposures to the peril in question.

Question 5

C.W. Beauregard is an Atlantic salmon farmer. He produces and sells salmon to satisfy the growing demand for fish. He has arranged a business loan with terms that guarantee that he can borrow up to $12,000 whenever he needs it within the next year. He must pay interest only on the unpaid loan balance. Beauregard has arranged which type of credit?

Accepted Answer

A)  credit-line loan 
B)  line of credit 
C)  single-payment note 
D)  collateralized loan 
A)  credit-line loan 
B)  line of credit 
C)  single-payment note 
D)  collateralized loan

Question 6

A life insurance policy paid for by the business and naming the company as beneficiary if the employee dies is called key person insurance.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following allows insurance companies to predict the likelihood that a peril will occur?

Accepted Answer

A)  underwriting 
B)  deductibles 
C)  law of risks 
D)  law of large numbers 
A)  underwriting 
B)  deductibles 
C)  law of risks 
D)  law of large numbers

Question 8

What are secured or unsecured business loans available from commercial banks with terms generally 5-12 years?

Accepted Answer

A)  collateral loans 
B)  mortgage loans 
C)  term loans 
D)  line of credit loans 
A)  collateral loans 
B)  mortgage loans 
C)  term loans 
D)  line of credit loans

What is insurance designed to protect top corporate management who can be the target of malpractice lawsuits?

Dividends are best described by which of the following?

Financial managers are best described by which of the following?

For a risk to be insurable, which of the following criteria must it meet?

A life insurance policy paid for by the business and naming the company as beneficiary if the employee dies is called key person insurance.

Which of the following allows insurance companies to predict the likelihood that a peril will occur?

What are secured or unsecured business loans available from commercial banks with terms generally 5-12 years?

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Understanding Money and the Canadian Financial System

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Exam 18: Finance

What is insurance designed to protect top corporate management who can be the target of malpractice lawsuits?

Dividends are best described by which of the following?

Financial managers are best described by which of the following?

For a risk to be insurable, which of the following criteria must it meet?

A life insurance policy paid for by the business and naming the company as beneficiary if the employee dies is called key person insurance.

Which of the following allows insurance companies to predict the likelihood that a peril will occur?

What are secured or unsecured business loans available from commercial banks with terms generally 5-12 years?

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Understanding Money and the Canadian Financial System

Filters