The market value of a fixed-rate liability will increase as interest rates rise, although the market value of a fixed-rate asset will decrease as interest rates rise.

CompuFix services desktop and laptop computers. The owner of CompuFix is concerned that computers that are left with the business to be repaired may be damaged or destroyed. To address this risk, CompuFix should purchase

A) mobile equipment and property insurance. B) coverage for property held by bailees. C) coverage for property of dealers—a "block" policy. D) equipment breakdown insurance.

The process of determining the effects of one key variable on the overall outcome of a pro forma income statement, for example, is known as:

A) ratio analysis. B) scenario analysis. C) sensitivity analysis. D) form analysis.