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3 years ago

What is the relationship between insurance and successful financial management? Why is insurance important?

2 answers:

4 0

Insurance is important because you are insuring items or things that mean something to you, or to protect others,insurance can help in case any accidents happen and you couldn’t get that item back.

harkovskaia [24]3 years ago

3 0

Successful financial management is the proper use of your money to maximize your income, whether in the financial market or a productive investment such as a trade or factory. Efficient financial management also consists of emergency planning and protection against unexpected situations that could put your assets at risk. Like for example a fire. It is in this sense that insurance is important. Insurance is a contract you make with an insurer to protect your assets if that event occur. For example, if you take out fire insurance, if a fire occurs in your home or business, the insurer will reward what you have lost financially, according to the terms of the contract.

You might be interested in

a retailer acquires merchandise for resale. how would this be recorded in a perpetual inventory system?

ella [17]

Debited to the inventory account.

Hope this helps!

5 0

2 years ago

Examine this supply and demand graph for a product. What does the red dot

pantera1 [17]

The product’s equilibrium price

Just simply because the price and quantity is the same

7 0

3 years ago

You own one call option with an exercise price of $30 on Nadia stock. This stock is currently selling for $27.80 a share but is

Shalnov [3]

Answer: 0.755

Explanation:

From the information given, the current per share value of the option if it expires in one year will be calculated as follows:

Firstly, we calculate the present value which will be:

= $28 / ( 1 + 0.05 )

= $28/1.05

= $26.667

The number of options needed will be:

= ( 34 - 28 )/ ( 4-0)

= 6/4

= 1.5

Therefore,

27.80 = (1.5 x Co) + [28 / (1+0.05)]

27.80 = 1.5Co + (28/1.05)

27.80 = 1.5Co + 26.667

1.5Co = 28.0 - 26.667

1.5Co = 1.1333

Co = 0.755

Therefore, the answer is 0.755

5 0

3 years ago

What is broad averaging, and what consequences can it have on costs?

mrs_skeptik [129]

What is broad averaging, and what consequences can it have on costs? Broad averaging is when a company or organization spreads the cost of resources across different objects to help the individual products or services stay equal. When a company does this they are assigning the costs of resources uniformly to cost objects. Broad averaging directly relates to costs because they can mislead an organizations data reports by spreading out the costs inappropriately.

7 0

3 years ago

Read 2 more answers

Mechem Corporation produces and sells a single product. In April, the company sold 2,000 units. Its total sales were $163,000, i

Scilla [17]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The company sold 2,000 units.

Total sales were $163,000

Total variable expenses were $80,900

Total fixed expenses were $57,800.

The contribution margin income statement follows this structure:

Income statement:

Sales

-Total variable cost

= contribution margin

-fixed costs

= net operating income

1) Income statement

Sales= 163,000

Total variable cost= (80,900)

Contribution margin= 82,100

Total fixed costs= (57,800)

Net operating income= 24,300

2) First, we need to calculate the unitary selling price and unitary variable cost:

Selling price= 163,000/2,000=$81.5

Unitary variable cost= 80,900/2,000= $40.45

Sales= 1,900*81.5= $154,850

Total variable cost= (1,900*40.45)= (76,855)

Total contribution margin= 77,995

Total fixed cost= (57,800)

Net operating income= 20,195

6 0

3 years ago