One inland marine coverage form is the accounts receivable ...

[jho37]

One inland marine coverage form is the accounts receivable coverage form. In which of the following cases would the purchaser of this form (the insured) be indemnified through the coverage?
 
  A) if the insured cannot pay amounts owed because the purchaser has become insolvent
  B) if the insured cannot pay amounts owed because the purchaser has incurred an insured physical damage loss
  C) if the insured cannot collect accounts receivable because of the destruction of records
  D) if the insured cannot collect accounts receivable because the purchaser extended credit to poor credit risks

Question 2

When a firm issues debt instead of equity to finance a new project,
 
  A) bondholders take on additional voting control as a result of their ownership of the debt instruments.
  B) shareholders share voting rights with bondholders.
  C) shareholders maintain voting control of the company but may face additional restrictive covenants found in the bond indenture.
  D) shareholders generally retain their rights to dividends owed before they are responsible for making newly contracted interest payments to bondholders.

[jlaineee]

Answer to Question 1

Answer: C

Answer to Question 2

C