A- The net earnings of the individual in question will be $710000 after the individual's claim for loss by fire is settled by the insurance company. B- Yes, he would buy the insurance if he were risk neutral.
C- Yes, the individual will buy the insurance policy if he were a expected utility maximizer as he would want to claim complete settlement of this amount to be claimed in case of fire loss.
- The expected net earnings from the insurance after deducting the amount from the premium paid and total claim endorsed by the insurance company will be $710000 which can be shown as below
We get,
- If the individual were risk neutral he would like to take the insurance as the risk of fire in the example given above is 0.5 which is greater than zero and this ultimately implies that <u>risk cannot be taken.</u>
- In the case if the individual is expected utility maximizer he would take the insurance as it would not only give him the claims from losses due to fire but also help him secure his house against beta of fire.
Hence, the correct answers will be A- $710000; B- Yes.; C- Yes. and imply that taking insurance will be a wise decision by the individual.
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Answer:
Corporate opportunity doctrine
Explanation:
The corporate opportunity doctrine is a principle that doesn't allow directors to participate as an individual in any business that can benefit the company withouth offering it first to the organization.
<u>Answer:</u>
<u>Cost reduction; leading to profit for the company/business.</u>
<u>Explanation:</u>
Remember, a cash flow is an indication or indicator of the amount of money coming into and out of a business.
Thus, effective purchasing Implies buying the right items needed for operations at <em>the right/fair price </em>so as to reduce the total cost of operations, which invariably leads to more Profit since there's reductions in costs.
The person who contributed the most to the understanding and final acceptance of the theory of glaciation was
Louis Agassiz.
He was a Swiss-American geologists as well as biologist who lived during the 19th century. He was a professor at many universities and quite an important scientist given that thanks to him, glaciology as a study was created in order to study glaciers and everything related to ice.
Answer:
gross domestic income is $13350
Explanation:
Given data
pay interest payments = $1,000
receive in interest = $1,200
wages = $8,000
rental receipt land = $200
profits = $2200
depreciation = $1,750
business taxes = $1000
to find out
gross domestic income
solution
we will find out gross domestic income by this given formula
gross domestic income is = profit + wages + rental receipt land + interest receive + tax + depreciation - interest paid
so
put all these value we get gross domestic income
gross domestic income = 2200 + 8000 + 200 + 1200 + 1000 + 1750 - 1000
gross domestic income = 13350
so gross domestic income is $13350
