Limited liability means that even in the event of bankruptcy, stockholders in a corporation can lose no more than the amount they invested in the company.
Answer the following statement true (T) or false (F)
True
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Which of the following statements is true with regard to career life insurance agents?
A) They represent several different life insurance companies. B) They are compensated largely through a salary and not through commissions. C) They are paid the same commission rate on new and renewal business. D) The insurer provides financing, training, supervision, and office facilities for career agents.
Which of the following statements is CORRECT?
A. Sinking fund provisions sometimes turn out to adversely affect bondholders, and this is most likely to occur if interest rates decline after the bond was issued. B. Most sinking funds require the issuer to provide funds to a trustee, who holds the money so that it will be available to pay off bondholders when the bonds mature. C. A sinking fund provision makes a bond more risky to investors at the time of issuance. D. Sinking fund provisions never require companies to retire their debt; they only establish "targets" for the company to reduce its debt over time. E. If interest rates increase after a company has issued bonds with a sinking fund, the company will be less likely to buy bonds on the open market to meet its sinking fund obligation and more likely to call them in at the sinking fund call price.
A person who is sued for damages because of alleged negligence may successfully defend herself/himself by proving
a. the plaintiff voluntarily assumed the risk. b. there was no proof of actual causation. c. the injury was not foreseeable by a reasonable person under the circumstances of the case. d. any or all of the above
Personal selling dominates the promotion mix in business markets. This is practical, since there are fewer of these customers and their purchases are typically larger.
Answer the following statement true (T) or false (F)