Question: Myra asks Dottie to sign for an Amazon package for her. When Dottie signs for the package she opens it to discover that it is the latest and greatest iPhone. Dottie decides to activate it and discovers its amazing features. Which of the following is true?
Answer Options:
Dottie has exceeded her express authority which was limited to signing for the package.
Since Dottie was authorized to sign for the package, her implied authority included opening the package.
Dottie did Myra a favor because she could verify that the iPhone was not defective.
Dottie had the apparent authority to open the package and verify its functionality.
Answer: Dottie has exceeded her express authority which was limited to signing for the package.
Question: Krista has a life estate in a residence. She decides to sell her life estate to Sujoy. Which of the following is true?
Answer Options:
Sujoy’s interest in the life estate ends upon Krista’s death.
Since Krista only has a life estate, she and Sujoy become tenants in common.
Krista could have sold the entire property outright to Sujoy.
Once she purchases the life estate, Sujoy is entitled to live in the residence for the rest of her life.
Answer: Sujoy’s interest in the life estate ends upon Krista’s death.
Question: 3. Although it is extremely difficult to make accurate forecasts of the revenues that a project will generate, projects’ initial outlays and subsequent costs can be forecasted with great accuracy. This is especially true for large product development projects.
True
False
Answer: b. False
Question: Which is not one of the five “HEALTHY EATING TIPS” that will help you make healthy food choices throughout the day and improve your eating habits? [Hint: “BROWSE BY LIFE STAGES” → “Young Adults” → “Going away to college or moving out on your own?” → “HEALTHY EATING TIPS”]
Answer Options:
[A] Pack healthy snacks
[B] Limit dairy and cheese
[C] Drink plenty of water
[D] Freeze leftovers into single servings
[E] All of the above
Correct Answer
Limit dairy and cheese
Answer:
Question: An example of a public corporation is which of the following?
Amazon
Amtrak
Federal Express
All are public corporations.
Answer: Amtrak
Question: Kathleen and Mackensie are staring at a pallet of firewood and in unison they say which of the following?
Answer Options:
That firewood is real property because it came from a planted tree.
That firewood is real property if it is brought into a home and burned in a fireplace.
That firewood is personal property.
That firewood is real property until it starts to burn.
Answer: That firewood is personal property.
Question: Which of the following statements is CORRECT?
a. If a 10-year, $1,000 par, zero coupon bond were issued at a price that gave investors a 10% yield to maturity, and if interest rates then dropped to the point where rd = YTM = 5%, the bond would sell at a premium over its $1,000 par value.
b. If a 10-year, $1,000 par, 10% coupon bond were issued at par, and if interest rates then dropped to the point where rd = YTM = 5%, we could be sure that the bond would sell at a premium above its $1,000 par value.
c. Other things held constant, including the coupon rate, a corporation would rather issue noncallable bonds than callable bonds.
d. Other things held constant, a callable bond would have a lower required rate of return than a noncallable bond because it would have a shorter expected life.
e. Bonds are exposed to both reinvestment risk and price risk. Longer-term low-coupon bonds, relative to shorter-term high-coupon bonds, are generally more exposed to reinvestment risk than price risk.
Answer Options:
a. True
b. True
c. True
d. False
e. False
Answer: b. True
Question: Any change in its beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely have an impact on the stock’s price, other things held constant.
a. True
b. False
Answer:
Question: Which of the following is an example of checks and balances with respect to the three branches of government?
Answer Options:
Congress passing a statute.
A Federal Agency issuing regulations.
The Supreme Court declaring a statute passed by Congress to be unconstitutional.
The Supreme Court holding a trial.
Answer: The Supreme Court declaring a statute passed by Congress to be unconstitutional.
Question: One of your friends asks you to explain the difference between a license and an easement in gross. Your response is…
A license is the right to enter property for a particular purpose – an easement in gross is the right to enter property to extract something from the property.
A license is the right to enter property for a particular purpose – an easement in gross is the right to enter property in order to have access to a road.
An easement in gross is the right to enter property for a particular purpose – a license is the right to enter property to extract something from the property.
There is no difference.
Answer: A license is the right to enter property for a particular purpose – an easement in gross is the right to enter property in order to have access to a road.
Question: What is typically a focus of state franchise laws?
Ensuring franchisors disclose essential information to potential franchisees.
Regulating the duration of franchise contracts.
Setting the prices that franchisors can charge for goods or services.
None of the above.
Answer: Ensuring franchisors disclose essential information to potential franchisees.
Question: A 10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a premium. Which of the following statements is CORRECT?
a. The bond’s current yield is less than 8%.
b. If the yield to maturity remains at 8%, then the bond’s price will decline over the next year.
c. The bond’s coupon rate is less than 8%.
d. If the yield to maturity increases, then the bond’s price will increase.
e. If the yield to maturity remains at 8%, then the bond’s price will remain constant over the next year.
Answer Options:
a. False
b. True
c. False
d. False
e. False
Answer: b. True