The margin of safety is the difference between ________
A) budgeted expenses and breakeven expenses
B) budgeted revenues and breakeven revenues
C) actual operating income and budgeted operating income
D) actual sales margin and budgeted sales margin
Answer: B
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Which of the following statements pertaining to the spendthrift clause in a life insurance policy is NOT correct?
A) The spendthrift clause is designed to protect beneficiaries against the claims of creditors. B) The spendthrift clause does not exempt proceeds paid to beneficiaries in a lump sum. C) The exemption applies only to money held in trust by the insurance company that is payable at some future time to the named beneficiary. D) A beneficiary receives $125 per month from a life policy under the fixed-amount settlement option and a spendthrift clause. The beneficiary may have the company send the payments to a creditor to pay off a debt."
The payoff to the holder of a put option is ________
A) strike price minus stock price if stock price is more than strike price B) strike price minus stock price if stock price is less than strike price C) stock price minus strike price if stock price is less than strike price D) stock price minus strike price if stock price is more than strike price