Cherise contacted her insurance agent and said she was interested in purchasing several life insurance policies: (a) a policy on her own life for $100,000, naming her son and daughter as beneficiaries; (b) a policy on her neighbor's life for $100,000,
since she had observed him engaging in reckless behavior, naming herself as beneficiary; (c) a $5,000 policy on another neighbor to cover a loan Cherise made to him, naming herself as beneficiary; and (d) a $250,000 policy on her business partner, naming herself as beneficiary. Discuss the legality of each of these potential contracts.
A person may insure her own life for any amount and may name any beneficiary. Anyone who takes out a life insurance policy on the life of another must have an insurable interest in that person. The policy in (a) would be legal, as Cherise is insuring her own life. The potential policy in (b) is lacking in insurable interest; therefore there could be no enforceable contract. The policy in (c) would be legal because the debtor-creditor relationship creates an insurable interest. The potential policy in (d) would be legal, as the business relationship creates an insurable interest; Cherise would need compensation if her business partner dies.
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The statement of cash flows discloses the effect on cash of the purchase and sale of both short- and long-term investments
Indicate whether the statement is true or false
Tyson and Belinda have bonded over their sarcastic complaints about their boss, Judith, for more than two years. Belinda notices Tyson spending more time in Judith’s office and asks Tyson what is happening. He admits he and Judith are dating. Belinda tells him this horrifies her and if he continues to see Judith they can no longer be friends. Tyson tells Belinda he does not intend to stop dating Judith and is hurt that Belinda feels this way. They agree they are no longer friends and, from now on, will talk only if they must in the course of their work. What form of disengagement does this represent?
a. state-of-relationship talk b. depersonalization c. cost escalation d. cold shouldering
Tom rents a furnished apartment from Linda. They have no written lease but Tom figures he'll
be in this apartment a while, so he buys a new chair, hangs a mirror on the wall (on an existing nail) in the living room, and installs a new vanity and sink combination in the bathroom. Later, he moves out and wants to take all these items with him. Which of the following is true? A) Tom can take all the items because he did not have a written lease. B) Tom cannot take any of the items because the apartment was furnished and all these items could be considered furnishings. C) Tom can take only the chair because the mirror and vanity were touching the walls of the building. D) Tom cannot take any of the items because he did not have a written lease. E) Tom can take the chair and the mirror, but not the vanity since it was permanently attached to the walls of the building and has become a fixture.
Which of the following statements is true about the annual report of a company?
A. The annual report contains four basic financial statements: the income statement; balance sheet; statement of cash flows; and statement of changes in long-term financing. B. The annual report does not provide any information about a firm's future prospects. C. The key importance of annual report information is that it is used by investors when they form their expectations about the firm's future earnings and dividends. D. The annual report provides no relevant information for use by financial analysts or by the investing public. E. The annual report is a report issued by each of the shareholders to the corporation and it contains information about the performance of the shares of the firm held by the shareholders.