If production technology displays significant economies of scale, many local locations are the most effective
Indicate whether the statement is true or false.
Answer: FALSE
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Which of the following statements is CORRECT?
A. An NPV profile graph shows how a project's payback varies as the cost of capital changes. B. The NPV profile graph for a normal project will generally have a positive (upward) slope as the life of the project increases. C. An NPV profile graph is designed to give decision makers an idea about how a project's risk varies with its life. D. An NPV profile graph is designed to give decision makers an idea about how a project's contribution to the firm's value varies with the cost of capital. E. We cannot draw a project's NPV profile unless we know the appropriate WACC for use in evaluating the project's NPV.
Which of the following statements about title insurance is true?
A) A premium must be paid annually to keep the policy in force. B) The policy term runs for 30 years or the length of the insured's mortgage loan, whichever is shorter. C) The policy guarantees that the owner will keep possession of the property if a defect in the title is discovered. D) The policy provides protection against title defects that occurred prior to the effective date of the policy.
The number of shares that a corporation's charter allows it to sell is the ________ stock.
Fill in the blank(s) with the appropriate word(s).
The incontestability clause states that the insurance company cannot dispute the validity of the contract after a specified period of time, usually
A) one year. B) two years. C) five years. D) 10 years