A company's credit agreements or loan covenants may require:

• A.high deductible levels and risk retention in order to minimize premium payments.
• B.minimum ratings for insurance carriers.
• C.outsourcing of the claims approval and payment process to an insurance company.
• D.risk management staff to work directly with underwriters to reduce commission
  payments.

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A company with constant earnings and excess cash is considering a significant stock repurchase plan. Which of the following is MOST LIKELY to occur?

• A.Earnings per share will increase, and the number of shares outstanding will stay constant.
• B.Earnings per share will decrease, and the number of shares outstanding will increase.
• C.Earnings per share will decrease, and the number of shares outstanding will stay constant.
• D.Earnings per share will increase, and the number of shares outstanding will decrease.

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An investor purchases securities that mature beyond the date when cash is required. The investor intends to sell the investment to meet the cash flow need. This strategy works best when:

• A.short term rates are lower than long term rates.
• B.investment prices are falling.
• C.the yield curve is inverted.
• D.interest rates are increasing substantially.

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A telecommunications company has decided to sell its call center hosting division. This is an example of what type of financial decision?

• A.Investment
• B.Financing
• C.Capital structure
• D.Accounting

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All treasury policies should be approved by:

• A.external auditors.
• B.the board of directors.
• C.the SEC.
• D.legal counsel.

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