Author name: Administrator

3262. The overall capitalization rate and the cost of debt remain constant for all degrees of leverage. This is pronounced by __________.

Traditional approach
Net operating income approach
Net income approach
MM approach
✅ The correct answer is C.
The overall capitalization rate and the cost of debt remain constant for all degrees of leverage. This is pronounced by Net income approach. Net Income Approach suggests that value of the firm can be increased by decreasing the overall cost of capital (WACC) through higher debt proportion.

3263. To whom does the Treasurer most likely report?

Chief Financial Officer
Vice President of Operations
Chief Executive Officer
Board of Directors
✅ The correct answer is A.
To Chief Financial Officer, the Treasurer most likely report. The chief financial officer (CFO) is the officer of a company that has primary responsibility for managing the company’s finances, including financial planning, management of financial risks, record-keeping, and financial reporting.

3264. The random walk hypothesis is most related to the___________.

weak-form EMH
semi strong-form EMH
semi weak-form EMH
strong-form EMH
✅ The correct answer is A.
The random walk hypothesis is most related to the weak-form EMH. Weak form efficiency, also known as the random walk theory, states that future securities’ prices are random and not influenced by past events. Advocates of weak form efficiency believe all current information is reflected in stock prices and past information has no relationship with current market prices.

3266. An insurance company needs assets for

Financing a new business
Generating more competitive returns
Greater leverage in investment
All of the above
✅ The correct answer is D.
An insurance company needs assets for financing a new business for generating more competitive returns and for greater leverage in investment.

3268. What is a type of virus that spreads itself, not just from file to file, but from computer to computer via e‐mail and other Internet traffic?

Computer virus
Worm
Denial‐of‐service attack
None of the above
✅ The correct answer is B.
Worm is a type of virus that spreads itself, not just from file to file, but from computer to computer via e‐mail and other Internet traffic. A computer worm is a standalone malware computer program that replicates itself in order to spread to other computers.

3253. Labour turnover means:

Turnover generated by labour
Rate of change in composition of labour force during a specified period
Either of the above
Both of the above
✅ The correct answer is B.
Labour turnover is defined as the rate of change of labour force in an organization during a specified period.

313. Which of the following is a biological asset?

Land
Building
Environment
Living plants and animals
✅ The correct answer is D.
Living plants and animals is a biological asset. Biological asset is any living plant or animals owned by the business, and are typically measured at fair value minus selling costs.
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