The combination of difference in condition (DIC) insurance and umbrella insurance:

• A.supplements the coverage provided by basic property and liability insurance.
• B.transfers risk to a company's captive insurance subsidiary.
• C.replaces the coverage provided by basic property and liability insurance.
• D.provides payments to a company in the event it is unable to pursue a line of business due to an unforeseen event.

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The corporate security officer for a large Fortune 30 firm has been tasked with evaluating the use of eBAM to help streamline bank account management for the company. Which of the following would be a PRIMARY reason that the company would be eager to adopt an eBAM management tool?

• A.Simplifies the process of managing complex, dispersed bank account and signatory information.
• B.Replaces the need to establish an initial relationship between an organization and a specific bank.
• C.Reduces steps in the bank account management process.

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A company is considering issuing debt in a market environment in which there is a larger than normal spread between high- and low-risk investments. Among several factors, what are the concerns regarding investor behavior that the treasurer will MOST need to consider?

• A.Matching maturity
• B.Capital structure
• C.Availability of collateral
• D.Flight to quality

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The use of debt to finance a company is called:

• A.cost of debt.
• B.borrowing cost.
• C.financial leverage.
• D.risk-adjusted cost.

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During the 1970s, many companies instituted dividend reinvestment plans (DRIPS). There are many benefits of this plan. What is the one negative aspect?

• A.Leads to a reduction in the number of small shareholders
• B.Reduces the expense of shareholder relations
• C.Leads to an increase in the number of small shareholders
• D.Does not allow automatic reinvestment of dividends

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