All categories

3 years ago

Which of the following is a problem that arises in a health insurance market?

Business

1 answer:

alexira [117]3 years ago

7 0

Answer: The correct answer is "A disproportionate number of high-risk individuals are attracted to buy insurance.".

Explanation: A disproportionate number of high-risk individuals are attracted to buy insurance is a problem that arises in a health insurance market. Due to the greater risk, many insurers choose not to allow these individuals to hire these policies, and those that do offer these products do so with a higher premium than others.

You might be interested in

Sears Corporation, which has a calendar year accounting period, purchased a new machine for $40,000 on April 1, 2007. At that ti

Irina-Kira [14]

Answer:

$1,000

Explanation:

The computation of gain on sales is given below:-

Depreciation per year = $40,000 - $10,000 ÷ 10

= $3,000

Life of equipment = 5.5 years

Accumulated Depreciation on equipment = 5.5 × $3,000

= $16,500

Book value of equipment = $40,000 - $16,500

= $23,500

Gain = Proceed from sale - Book value at the time of sale

= $24,500 - $23,500

= $1,000

5 0

3 years ago

When a product or service is delivered for which a customer advance has been previously received, the appropriate journal entry

tester [92]

Answer:

Explanation:

According to my research on different financial terminology, I can say that based on the information provided within the question the appropriate journal entry would include a debit to a liability and a credit to a revenue account. This must be included otherwise the journal entry will state the sale of the product or service as being made twice, which will cause errors in the financial statements.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0

3 years ago

Firm X has total earnings of $49,000, a market value per share of $64, a book value per share of $38, and has 25,000 shares outs

sveticcg [70]

Answer:

$1,456,000

Explanation:

Calculation to determine the value of the total equity of the combined firm, XY, if the purchase method of accounting is used

First step is to calculate the Assets from Firm X

Assets from Firm X = 25,000 ( $38 )

Assets from Firm X= $950,000 (book value)

Second step is to calculate the Assets from Firm Y

Assets from Firm Y = 22,000 ( $21 )

Assets from Firm Y = $462,000 (Market value)

Third step is to calculate the Goodwill

Goodwill = 22,000 ($21 + 2 ) - $462,000

Goodwill= $44,000

Now let calculate the the total equity of the combined firm, XY,

Total equity of XY = $950,000 + $462,000 + $44,000

Total equity of XY = $1,456,000

Therefore the value of the total equity of the combined firm, XY, if the purchase method of accounting is used will be $1,456,000

6 0

2 years ago

What was the result of developed countries extracting resources from their colonies?

saul85 [17]

Answer: D. There was a one-way flow of wealth favoring the colonizers.

Explanation:

With the Colonists simply taking resources and not paying the colonies for it, there was a one way flow of wealth which favored them alone. Had the colonists paid for the goods and then processed them for resale (as developed countries do now), there would have been at least some sort of wealth flowing back to the colonies for the resources they possessed. The Colonists were essentially not paying for raw material inputs for production and simply reaped all the benefits after processing.

5 0

3 years ago

Read 2 more answers

The following transactions occurred during March 2016 for the Wainwright Corporation. The company owns and operates a wholesale

Triss [41]

Answer:

1. Financing Activity : $300,000

2.Investing Activity : $10,000 and Non-cash Financing and Investing Activity : $30,000

3.Operating Activity : - $90,000

4.Operating Activity : $50,000

5.Operating Activity : -$5,000

6.Operating Activity : -$6,000

7.Operating Activity : -$70,000

8.Operating Activity : $55,000

9.Operating Activity : $1,000

Explanation:

Operating Activities involves the entity`s trading operation in ordinary course of business.

Investing Activities involves the entity`s sale or purchase of Investments.

Financing Activities involves the entity`s acquisition and sale of funds.

6 0

3 years ago