While the assets and accounts payable of a firm may reasonably be expected to grow with sales, ________ will not naturally grow with sales

Which of the following is true with regards to the trade-off between a risk-free investment and a risky investment?

A. There is very little risk in an IPO since returns often exceed 20% in the first day. B. Mutual funds containing mostly large stocks are more risky than mutual funds containing smaller stocks. C. If you prefer less risk, purchase a bond issued by a successful and established firm. D. There is little risk in purchasing land as an investment since the value of land always appreciates over time.

Which of the following is true?

A) The life insurance grace period gives the insured two months during which to correct any misinformation supplied in the application for coverage. B) If the insured misstates his/her age on a life insurance application, the insurer has grounds for voiding the contract. C) The purpose of the beneficiary clause in life insurance is to enable the policy owner to designate to whom the proceeds shall be paid when the insured dies. D) The life insurance assignment clause requires that the policy owner get the insurer's consent before assigning policy ownership to someone else.