209. What is a separate and fully equipped facility where the company can move immediately after the disaster and resume business?

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A) Disaster recovery plan
B) Hot site
C) Cold site
D) Disaster recovery cost curve
✅ ANSWER: B
Hot site is a separate and fully equipped facility where the company can move immediately after the disaster and resume business. A hot site is a commercial disaster recovery service that allows a business to continue computer and network operations in the event of a computer or equipment disaster.

207. Which, among the following, are common misconceptions about cost of capital?

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A) Depreciation-generated funds have no cost
B) Cost of capital is low if a project is heavily debt-financed
C) Cost of equity is equal to the dividend rate
D) All of the above
✅ ANSWER: D
Depreciation-generated funds have no cost, Cost of capital is low if a project is heavily debt-financed and Cost of equity is equal to the dividend rate are common misconceptions about cost of capital.

201. Complex statistical and mathematical theory is an approach, which is classified as

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A) arbitrage pricing theory
B) arbitrage risk theory
C) arbitrage dividend theory
D) arbitrage market theory
✅ ANSWER: A
Complex statistical and mathematical theory is an approach, which is classified as arbitrage pricing theory. Arbitrage pricing theory (APT) is a multi-factor asset pricing model based on the idea that an asset’s returns can be predicted using the linear relationship between the asset’s expected return and a number of macroeconomic variables that capture systematic risk.

237. Private Key cryptography is also known as __________ cryptography.

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A) Public key
B) Symmetric
C) Asymmetric
D) None
✅ ANSWER: B
Private Key cryptography is also known as Symmetric cryptography. A private key is a tiny bit of code that is paired with a public key to set off algorithms for text encryption and decryption. It is created as part of public key cryptography during asymmetric-key encryption and used to decrypt and transform a message to a readable format.

228. _________ life insurance pays off a policyholder’s mortgage in the event of the person’s death.

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A) Term
B) Mortgage
C) Whole
D) Endowment
✅ ANSWER: B
Mortgage life insurance pays off a policyholder’s mortgage in the event of the person’s death. This protects a mortgage holder’s heirs in the event of his/her untimely demise. If the beneficiary dies after he/she has finished paying for the house, no mortgage life insurance is paid out.