Which of the following statements best describes a money market mutual fund?
A. It pools funds from many investors and uses these funds to purchase very safe, highly liquid securities.
B. It is a short-term marketable IOU issued by the U.S. federal government.
C. It is the part of a firm's net income it reinvests.
D. It is a financial agreement between a firm and a bank in which the bank pre-approves credit up to a specified limit.
Answer: A
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The acronym RFP refers to ______.
A. request for proposals B. referring funds programs C. reduced funding proposals D. repeated funding programs
Distinguishing between product and period costs is sometimes guided by the value-added principle.
Answer the following statement true (T) or false (F)
In a trust arrangement, the trustee has legal title to the trust corpus, and the beneficiary has equitable title
Indicate whether the statement is true or false
John, Samuel, and Jim are general partners in the development of an electric car. Jim pours all his money into the project, but it never seems to work out. Eventually the partnership and Jim cannot meet their daily obligations, and the partnership is dissolved. Jim files for bankruptcy. If the partnership assets are insufficient to pay all claims against the partnership:
a. the trustee in bankruptcy must seek recovery of the deficiency first from John and Samuel. b. Jim is released from liability because of the bankruptcy proceedings. c. Jim's personal assets are not available for the partnership debts because he has limited liability. d. the bankruptcy court must follow the doctrine of marshaling of assets.