The _____ method is the most detailed method of determining the amount of life insurance coverage needed for an individual.

A. human life value
B. multiple-of-earnings
C. risk assessment
D. economic identification
E. needs analysis


Answer: E

Business

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Nexis Corp issues 1,000 shares of $15 par value common stock at $25 per share. When the transaction is recorded, credits are made to:

A) Common Stock $15,000 and Paid-in Capital in Excess of Par Value $10,000. B) Common Stock $25,000 and Retained Earnings $15,000. C) Common Stock $15,000 and Paid-in Capital in Excess of Stated Value $10,000. D) Common Stock $25,000.

Business

Legally, an affirmative action program is required when

A. a firm has 25 or more employees. B. a firm wants to expand its workforce. C. a firm's union-management contract is being negotiated. D. a firm has a federal contract exceeding $50,000.

Business

Small business owners expect quick and concrete results from their investment of time and capital instead of engaging in the long-range planning.

Answer the following statement true (T) or false (F)

Business

The following statements are all true EXCEPT:

A) dividends are paid from net income. B) dividends represent a use of cash and do not have to be paid if a firm has a net loss. C) dividends are paid to a firm's stockholders, both preferred and common stockholders, are tax-deductible to the paying company. D) preferred stockholders, who are primarily investors seeking current income, usually receive dividends.

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