What does the term incorporation by reference mean?
A. The legal incorporation of a company in more than one state.
B. Filing information with the SEC by indicating that the information is already available in another document.
C. A reference guide indicating informational requirements specified in Regulation S-X.
D. Incorporating a company in a state outside of its base of operations.
Ans: B. Filing information with the SEC by indicating that the information is already available in another document.
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`In capital budgeting analysis, the use of a cumulative NPV is useful for:
a. determining a probability distribution of NPVs. b. determining the time required to achieve a positive NPV. c. determining how the required rate of return changes over time. d. determining how the cost of capital changes over time. e. A and B
Which of the following is the most valid reason for a person to purchase a specified (dread) disease health insurance policy?
A) She wants to make sure that she and her family are protected against a major illness. B) Her family has a history of cancer, and she is concerned that she might contract the disease. C) She wants coverage against the risk of illnesses such as AIDS, tuberculosis, and diabetes. D) She has been diagnosed with heart disease.