1. Miller’s Hardware has a flexible short-term financing policy. Over the course of one year, the firm should expect to have some months that allow it to:
repay all of its debts.
invest in marketable securities.
reduce its total costs below the firm’s normal minimum total cost point.
finance all of its assets with short-term loans.
earn high returns on all its current assets.
2. When reviewing an insurance policy, which is not considered a key policy provision?
a. The deductible
b. Perils covered
c. Losses covered
d. Amount of coverage