Risk pooling allows an insurance carrier to provide an income stream via an immediate annuity, even with its costs and expenses, far more cheaply than a person could on his or her own. Risk pooling is the practice of sharing all risks among a group of insurance companies.
Answer:
Cascade down.
Explanation:
MBO means Management by Objectives.
Is a program that encompasses:
-specifict goals
-participatetively set
-for an explicit time period
-with feedback on goal progress
MBO operationalizes the concept of objectives by devising a process by which objectives cascade down through the organization.
The result is a hierarchy of objectives that links objectives at one level to those at the next level.
For individual employee, MBO provides specific personal performance objectives.
The cascade down of objectives is:
1 Overall organizational objectives
2 Divisional objectives
3 Departamental objectives
4 Individual objectives
<span>What is the most important duty of a firm's financial officer? to ensure that the firm has enough cash on hand to meet its commitments at any given time to decide how to pay for investments to manage working capital to make investment decisions?</span>
Answer: to historical performance or budget
Explanation:
A profit center in a business is a division that is able to make revenues independently and contribute to the revenue of the entire business. In evaluating the performance of a profit center manager, it is best to compare the performance to a budget or their historical performance.
This is because profit centers engage in different businesses and so their revenue making style will be unique. Some profit centers will make more than others because of the goods they produce or the way they produce it. It is therefore best to compare a profit center to an internal measure such as the budget and historical performance.
If the profit center exceeds either of these then they are performing well.
