A+ Answers of the following Questions

1. Tom contacts an attorney about filing bankruptcy. The attorney says that Tom will have to pass a means test. This suggests the attorney is planning to file Tom's bankruptcy under Chapter
A. 12.
B. 13.
C. 11.
D. 7.

2. Terry parks his car outside the restaurant and goes inside to eat. When he returns, his car has been damaged by vandalism. Terry's insurance company will pay for the repairs if Terry has __________
insurance.
A. collision
B. comprehensive
C. liability
D. no-fault

3. Charlie files Chapter 11 bankruptcy. __________ creditors have the right to vote on the plan.
A. All
B. Impaired
C. Secured
D. No

1. Bob forgot to make his premium payment this month. The policy
A. is terminated, but the insurance company must provide coverage under a new policy if Bob reapplies.
B. is terminated in all cases.
C. lapses, but can be reinstated by making the late payment in all cases.
D. lapses, but can be reinstated by making the late payment if the policy or state law provides a grace period.

2. Sally and Carl have received a foreclosure notice. The foreclosure sale is set to take place in seven days. They contact a bankruptcy attorney. The attorney tells them the foreclosure proceedings will be halted, at least temporarily, if they file bankruptcy, due to the
A. federal exemptions.
B. state exemptions.
C. automatic stay.
D. means test.

3. Tom has fire insurance to protect his house. There's a fire. Fire damages the property. When firefighters spray water on the fire to put it out, the water causes damage. In addition, to keep the fire from spreading to neighboring houses, the firemen destroy part of the house. Which of the following damage typically would be covered under a fire insurance policy?
A. Damage from the fire and from the firefighters' hose water
B. Damage from the fire
C. Damage from the fire, the firefighters' hose water, and the property destruction by the firefighter
D. Damage from the fire and from property destruction by the firefighters

1. Louie and Freda married last year, and their income is low. Both are about to graduate from college, and over the next few years, their incomes should begin to rise steadily. They would like to buy a house now, as Freda is pregnant, but are afraid it will be a couple of years before they have the income for a mortgage payment. What type of mortgage would you recommend to them?
A. Variable-rate mortgage
B. Reverse mortgage
C. Deed of trust
D. Graduated-payment mortgage

2. Billy borrowed money from First Bank, and he entered an agreement listing his scooter as collateral.
First Bank took all necessary steps to properly perfect its security in the scooter on the day of the loan. The next day, Billy borrowed money from Second Bank, and he entered an agreement listing the same scooter as collateral. Second Bank also took all necessary steps to properly perfect its security in the scooter on the day of the loan. Billy defaults on both loans, defaulting

on Second Bank and then on First Bank. Which of the following statements regarding this set of facts is true?
A. First Bank possesses the priority claim because it was the first to perfect its security interest.
B. First Bank possesses the priority claim because it was the first bank to make the loan that listed the scooter as collateral.
C. Neither bank possesses a right to repossess the scooter because Billy listed it as collateral with both banks.
D. Second Bank possesses the priority claim because Billy defaulted on Second Bank first

3. Bob forgot to make his premium payment this month. The policy
A. is terminated, but the insurance company must provide coverage under a new policy if Bob reapplies.
B. is terminated in all cases.
C. lapses, but can be reinstated by making the late payment in all cases.
D. lapses, but can be reinstated by making the late payment if the policy or state law provides a grace period.

1. Calculate average day’s collection.
A. 12 days
B. 120 days

C. 1.2 years

D. 12 years

2. Calculate profit margin on sales (round to nearest one-hundredth percent).
A. 16.667%
B. 16.67%

C. 1.667%

D. 1.67%

3. Cassandra is repaying an installment loan of $3,500 with 20 equal monthly payments of
$196 each. What is the annual percentage rate of the loan?
A. 7.55%
B. 11.16%

C. 12%

D. 13.25%

1. Last month, Bob took a cruise from Florida to the Bahamas. The cost of his round-trip
ticket was $832. The federal excise tax on the cruise was 8%, and Florida has a sales tax
rate of 6%. What was the total purchase price of Bob’s ticket?
A. $832.00
B. $881.92

C. $898.56

D. $948.48

2. Look at the line chart shown in Figure A-4. This line chart illustrates the monthly sales for a
company that sells music CDs. According to the chart, how many CDs were sold in the
month of May?
A. 500
B. 1,000

C. 1,500

D. 2,000

3. A company declared a dividend of $2,200,000. The company has 55,000 shares of common stock outstanding. What are the dividends per share of common stock?
A. $0.40 per share
B. $4 per share

C. $40 per share

D. $400 per share