INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 1

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-You own your house.The amount of insurance coverage you will have on your furniture will be dependent upon [the replacement value of your house | the amount of insurance on your home].

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

---

Definitions:

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by banks.

Common Stock

Shares of ownership in a company, which entitle the holder to vote at shareholder meetings and to receive dividends.

Agency Problems

Conflicts of interest that arise between stakeholders (principals) and decision-makers (agents) within a corporation or agency, often due to differing objectives.

Antitakeover Strategies

Measures employed by a company to prevent or deter unwanted takeover bids, such as poison pills or golden parachutes.