Five Below Zero is a new ski resort in Colorado. Five Below Zero is concerned that an abnormally warm winter will prevent the accumulation of snow needed to have a profitable ski season
Five Below Zero purchased a contract that will pay a lump sum if the daily high temperature exceeds 30 degrees for more than 12 days between January 1st and March 31st. The contract Five Below Zero purchased is called a(n)
A) catastrophe bond.
B) weather option.
C) interest rate swap.
D) convertible bond.
Answer: B
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Leading "big-box" stores, such as Walmart and Target, now dominate the retail scene. However, even "small-box" stores like Dollar General, are thriving in the current economic environment. All three retailers are considered ________
A) convenience stores B) discount stores C) full-service retailers D) designer shops E) specialty stores
Tom owns a hardware store at which he sells power tools. He sells a cordless drill to Victor who
takes it home and is injured when he uses it, because the drill is defective. Victor can sue Tom for a breach of the implied warranty of merchantability. Indicate whether the statement is true or false