Which of the following is the only risk that is relevant to a rational, diversified investor, because it cannot be eliminated or reduced through diversification?
A. Diversifiable risk
B. Stand-alone risk
C. Market risk
D. Unsystematic risk
E. Firm-specific risk
Answer: C
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Lotus Company's actual overhead is greater than the applied overhead. This difference is deemed immaterial. The company records this by debiting Overhead account and crediting Cost of Goods Sold account. Which of the following is true of Lotus Company?
A) The company has correctly recorded the difference. B) The company's assets are overstated. C) The company should have credited Work in Process account for the difference. D) The company's Cost of Goods Sold account is understated.
If the corporate price and young couples' price both double, how many additional rooms should the Stone Lion hold for corporate clients?
A) 3 B) 2 C) 1 D) 0
All of the following will lower the premium of long-term care insurance, except
A) having a longer waiting period before the policy goes into effect. B) having a higher stop-loss provision. C) waiting until you are retired to obtain the insurance. D) choosing to receive benefits for a limited period.
Professional sports, entertainers, and other occupations with high individual bargaining power tend to organize under:
A. Employee empowerment unionism. B. Associational unionism. C. Employee ownership unionism. D. Solidarity unionism.