Exam
Name___________________________________
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1)
Funds used to start a business are usually the owner's.
1)
_______
2)
Funds used to start a business are usually your own and borrowed financial capital.
2)
_______
3)
As a small business owner, you are not liable for the debts of your business.
3)
_______
4)
As your individual business assets increase, your ability to borrow funds decreases.
4)
_______
5)
,As your individual business assets increase, your ability to borrow funds increases.
5)
_______
6)
As your individual business assets increase, the complexity of determining how to invest and protect these assets also
increases.
6)
_______
7)
As your individual business assets increase, the complexity of determining how to invest and protect these assets
normally decreases.
7)
_______
8)
Risk is a term based on the uncertainty of future outcomes.
8)
_______
9)
Risk is a term based on the certainty of future outcomes.
9)
,_______
10)
A holder of a U.S. Government bond has a greater uncertainty of getting back principal and interest than the holder of a
corporate bond.
10)
______
11)
A holder of a U.S. Government bond has a greater certainty of getting back principal and interest than the holder of a
corporate bond.
11)
______
12)
Speculative risk is uninsurable.
12)
______
13)
In a variable life insurance policy, all investment risk is shared by both the company and the policy holder.
13)
______
, 14)
Long term care insurance is only needed by the senior citizen population.
14)
______
15)
Pure risk involves only a chance of loss.
15)
______
16)
Speculative risk involves only a chance of loss.
16)
______
17)
Speculative risk involves a chance of both gain or loss.
17)
______
18)
To have an insurable loss, the loss must be accidental.
18)
Name___________________________________
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1)
Funds used to start a business are usually the owner's.
1)
_______
2)
Funds used to start a business are usually your own and borrowed financial capital.
2)
_______
3)
As a small business owner, you are not liable for the debts of your business.
3)
_______
4)
As your individual business assets increase, your ability to borrow funds decreases.
4)
_______
5)
,As your individual business assets increase, your ability to borrow funds increases.
5)
_______
6)
As your individual business assets increase, the complexity of determining how to invest and protect these assets also
increases.
6)
_______
7)
As your individual business assets increase, the complexity of determining how to invest and protect these assets
normally decreases.
7)
_______
8)
Risk is a term based on the uncertainty of future outcomes.
8)
_______
9)
Risk is a term based on the certainty of future outcomes.
9)
,_______
10)
A holder of a U.S. Government bond has a greater uncertainty of getting back principal and interest than the holder of a
corporate bond.
10)
______
11)
A holder of a U.S. Government bond has a greater certainty of getting back principal and interest than the holder of a
corporate bond.
11)
______
12)
Speculative risk is uninsurable.
12)
______
13)
In a variable life insurance policy, all investment risk is shared by both the company and the policy holder.
13)
______
, 14)
Long term care insurance is only needed by the senior citizen population.
14)
______
15)
Pure risk involves only a chance of loss.
15)
______
16)
Speculative risk involves only a chance of loss.
16)
______
17)
Speculative risk involves a chance of both gain or loss.
17)
______
18)
To have an insurable loss, the loss must be accidental.
18)
