Which of the following statements is true of baby boomers?
a. They are postponing retirement to pay debts.
b. They spend less than any other population group.
c. They have minimal health care expenses.
d. They are affected by the Great Recession than any other cohort.
ANSWER: a
Boomers are carrying substantial financial burdens, including mortgages, health care expenses, and their children's educations. Many are postponing retirement to pay these debts.
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The nature of B2B markets requires ________.
A. companies to focus primarily on selling products that end up as components for finished goods B. a more personal relationship between the buyer and seller than in B2C markets C. organizations to invest more on consumers than suppliers to maintain their business D. investment of more resources primarily on service sectors E. impersonal communication at regular intervals through mediums such as direct mail
What is the copay clause in an insurance policy?
A) a clause in a life insurance contract that provides no coverage if the insured commits suicide before a stipulated date B) a clause in an insurance policy that expressly stipulates the risks that are not covered by the insurance policy C) a clause that prevents insurers from contesting statements made by insureds in applications after the passage of a stipulated number of years D) a clause that requires the insured to pay a percentage of an insured loss along with the remainder being paid by the insurer
Paying Payroll Service (PPS) recently declared bankruptcy. The price of PPS's stock has dropped from approximately $10 per share one year ago to $1 today. You can imagine that stockholders are not happy that the value of their stock has dropped so significantly. At the same time the financial position of the firm was deteriorating, PPS executives increased their salaries and perquisites substantially. Nothing they did violated any laws or was considered an unethical act. We would most likely describe this situation as _____.
A. an agency problem B. an accounting glitch C. an appropriate use of the tax laws D. an appropriate action, because executive compensation should always be increased substantially each year E. acceptable, because it is obvious that the executives were trying to maximize the value of the firm, which is what the shareholders want them to do
O owns Blackacre, a lovely home in Phoenix, which is worth $100,000. Blackacre is mortgaged to M for $80,000. The mortgage provides that to secure the $80,000 debt, O mortgages "all the following described real estate (description omitted) including all
fixtures, improvement and appurtenances thereto, including those now existing or hereafter added to the property." The mortgage is duly recorded. Thereafter O purchases some lovely decorative mirror squares from Mike's Mirrors on credit ($800). O then hires Harry to attach the mirrors (with a rather strong glue) to the east wall of his living room. Harry charges O $150 for his labors. Mike properly filed a financing statement on the mirrors - before Harry began installation. Harry files a mechanic's lien for the labor he performed when he was finished. (Filed after Mike; Mike filed after M). O pays nothing to Mike and Harry. Mike wants his mirrors and Harry wants to be paid. M objects saying his mortgage is superior to their rights. What results?