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Unformatted text preview: ________________________.___——,, AGB10101 Quiz number 8 stock,ins N - II ~ . -
,-... Wigwam 18
(M ark the correct answer to the left of the question number.) I 5 a. Bonds
b. Common stock
c. Preferred Stock Relate the above responses for the following statements, they may be used more than once.
2. This form of credit instrument is called equity or risk capital. This credit instrument pays a guaranteed rate of return to the holder, does not have voting rights and can be cumulative or
non—cumulative. A . This is a long-term credit instrument that promises to pay a deﬁnite rate of interest, and to repay the principal. 3.
8* This form of credit instrument may or may not participate in additional offerings.
B 5. This form of credit instrument is the last to receive payment in a bankruptcy. '- . Fidelity bond
Risk. Surety bond.
Consequential loss EDP-.057!” Relate the above responses for the following statements, they may be used more than once. 6 6. This is a type of ﬁre insurance coverage that covers an item that is lost as the result of ﬁghting the ﬁre.
(,7. One can either establish a reserve, reduce the hazards, or buy insurance to reduce this. A 8. This will repay you if your employees embezzle from your company. 9 9. This will be used when you need to guarantee the completion of a contract. 310. This pays a basic rate per pound or per cu.ft for goods that are being transported a. Term Life insurance
1). Whole or Ordinary Life Insurance
Relate the above responses for the following statements, they may be used more than once. - A ‘l 1. Uses the natural premium payment plan.
9 12. Includes a savings plan plus protection
A13. is often used for buylsell or partnership agreements. 14115. Bill's car has liability, comprehensive and collision insurance coverage. After he leaves the car on the street and it rolls down
the hill and destroys a the neighbors hedge, and incurs major damage to the trunk and taillight assembly. Later in the
evening a thief comes buy and breaks out a window and steals the camera that was in the rear seat area. Which insurance
coverage will pay probably pay for each of the following losses. Place answer in blank to the left of the item. . the damage to the neighbor’s hedge
o the damage to repair his trunk and taillight assembly
0 to replace the camera that was stolen. 16-17. List the three qualifications for a risk to be insurable.
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(jammed W 5 A ‘0‘” 18. Why does the price of a bond ﬂuctuate or change in the market? It We HMdl/LWS We at) Jrlu totem/mt? Mitten
NEW-ti ih’iVCi‘l V311 and thc WM Writ/69’? W’C- 19-20. What are the advantages of using bonds to finance a company expansion as compared to using stocks? “it“. MVM is that W is a Sammie-d ml: 65
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- Fall '01