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Answer:
Insurance companies manages risk by balancing the low-risk drivers and the high-risk drivers. Insurance would charge higher rates for high risk drivers.
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Explanation:
Insurance companies manages risk by sorting out the people who have a lower chance of risking a crash, with people who have a higher chance of risking a crash. They do this by charging low rates to the people that have a lower chance of causing a risk. They charge them low because they are trustworthy, and don't need to rack up a lot of money quick if they ever get into a crash. Remember, insurance makes people pay monthly so they could use that money in a accident.
But, this is different for people with higher risk. People that have a high risk of getting into an accident would be charged with a higher rate than people with lower risk. Insurance companies charge them with higher rates because since higher risk drivers get are more likely to get into an accident, insurance companies want to make sure that they can get the money for the accident as soon as possible. Insurance companies are the ones that pay for the accident, and that's why most places require you to have insurance while you drive.
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Answer:
The causes of the Great Depression were many and varied, but the impact was visible across the country. By the time that FDR was inaugurated president on March 4, 1933, the banking system had collapsed, nearly 25% of the labor force was unemployed, and prices and productivity had fallen to 1/3 of their 1929 levels.
Later, a second New Deal was to evolve; it included union protection programs, the Social Security Act, and programs to aid tenant farmers and migrant workers. ... In the long run, New Deal programs set a precedent for the federal government to play a key role in the economic and social affairs of the nation.
Explanation:
The Great Recession—sometimes referred to as the 2008 Recession—in the United States and Western Europe has been linked to the so-called “subprime mortgage crisis.” Subprime mortgages are home loans granted to borrowers with poor credit histories. Their home loans are considered high-risk loans.
Experimental psychology refers to work done by those who apply experimental methods to psychological study and the processes that underlie it. Experimental psychologists employ human participants and animal subjects to study a great many topics, including (among others) sensation & perception, memory, cognition, learning, motivation, emotion; developmental processes, social psychology, and the neural substrates of all of these.[1]
Answer:
A. the rental incomw darnell could receive if he choose to rent out his showroom
Answer:
a. $4.4 million
Explanation:
a. For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:
The fair value of net asset = The market value of Red River Chips' assets - the market value of liabilities
= $7 million - $6.2 million
= $0.8 million
And, the purchase value of Red River Chips for cash is $5.2 million
So, the goodwill would be
= $5.2 million - $0.8 million
= $4.4 million
b. Goodwill is an intangible asset that is recorded in the asset side of the balance sheet. It is used for impairment tests annually. Since the fair value is less than the carrying value so the journal entry would be
Loss on impairment A/c Dr XXXXX
To Goodwill A/c XXXXX
(Being loss on impairment is recorded)
