Which of the following statements is true of a restrictive indorsement?
A. It includes indorsements for collection, which are commonly put on by banks involved in the collection process, and indorsements for deposit.
B. A person who purchases a check indorsed "for collection" automatically converts it even if the indorser received the amount paid for it.
C. If an indorser merely signs his name and does not specify to whom the instrument is payable, he has indorsed the instrument in restriction.
D. A person who takes an instrument with a restrictive indorsement should not pay for the instrument consistently with the indorsement.
Answer: A
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Which of the following statements is CORRECT?
A. The preferred stock of a given firm is generally less risky to investors than the same firm's common stock. B. Corporations cannot buy the preferred stocks of other corporations. C. Preferred dividends are not generally cumulative. D. A big advantage of preferred stock is that dividends on preferred stocks are tax deductible by the issuing corporation. E. Preferred stockholders have a priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation.
Annual cash dividends per share divided by market price per share is the:
A. Earnings per share. B. Profit margin. C. Price-earnings ratio. D. Dividend yield ratio. E. Price-dividends ratio.
The book value of a company is calculated by
A) adding the price per share to the dividends paid. B) subtracting its price per share from the dividends paid. C) subtracting the value of all the firm's assets from the value of its liabilities. D) subtracting the value of all the firm's liabilities from the value of its assets.
Which of the following clauses is typically contained in an acceptable use policy?
A. A confidentiality clause B. A nonrepudiation clause C. An employee use clause D. A repudiation clause