1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aloiza [94]
3 years ago
12

Discuss the relationship between risk and insurance.

Business
1 answer:
Klio2033 [76]3 years ago
3 0
Risk is the exposure to uncertainty. An insurance policy is an exchange of a certain loss (the premium) to have another party (the insurer) absorb all or part of the negative consequence of being exposed to that uncertainty. 

<span>For example, you have virtually no risk of dying in an airplane crash if you do not get in an airplane. You are not exposed, other than that a plane could fall on you. Likewise, if you jump out of an airplane without a parachute, there is no risk. You have all the exposure in the world, but it is certain that you will be killed. There may be some trivial risk that you live but it is so small that it can be ignored. </span>

<span>You need two things, uncertainty and exposure. Life insurance is a good example, you know for certain that you will die, you do not know when. The insurer covers you against premature death. Its reverse, the immediate annuity, covers you against living too long and running out of investment resources.</span>
You might be interested in
The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $26,800. If these calcu
Allushta [10]

Answer:

$53

Explanation:

Tolar Corporation

Price per calculator × 400 calculators > $10,000 + $11,200

Price per calculator × 400 calculators > $

$21,200

Price per calculator = $21,200 ÷ 400 calculators

= $53 per calculator

8 0
4 years ago
The parents of a child diagnosed with Tay-Sachs inquire about progression of the disorder. Which statement by the nurse is accur
Anit [1.1K]

Answer:

The correct answer is <em>The child will experince decreased muscular and neurologic functioning until death occurs</em>.

Explanation:

Tay-Sachs disease is a rare degenerative disease that affects the brain and central nervous system and is hereditary, autosomal recessive (more common in descendants of Hebrews).

It is one of the diseases by lysosomal deposition. Individuals who suffer from it are unable to produce a lysosomal enzyme called hexosaminidase-A that participates in the degradation of gangliosides, a type of sphingolipid, that accumulate and degenerate to the central nervous system. It is included within lipidosis or lipid storage diseases.

5 0
3 years ago
Ralph Chase plans to sell a piece of property for ​$170000. He wants the money to be paid off in two ways monica ​short-term not
Crazy boy [7]

Answer:

amount paid at a rate of 9% = 90000

amount paid at a rate of 7% = 170000-90000=80000

Explanation:

We have given total amount = $170000

Let amount paid at rate of 9% is x

Then amount paid at a rate of 7% = 170000-x

We know that sum of individual interest will be equal to total interest

So 0.09\times x+(170000-x)0.07=13700

9x+1190000-7x=1370000

2x=180000

x=90000

So amount paid at a rate of 9% = 90000

And amount paid at a rate of 7% = 170000-90000=80000

3 0
3 years ago
The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corpo
Komok [63]

Answer:

The annual financial disadvantage of eliminating the division is $30,000.

Explanation:

contribution margin = revenue - variable costs = $200,000

fixed expenses = $500,000

net loss = $300,000.

If the division is eliminated, only $170,000 of the fixed expenses can be avoided, therefore the company's fixed expenses will remain at $330,000.

Therefore, eliminating the children's division will result in a $30,000 (= $330,000 - $300,000) decrease in net income.

4 0
3 years ago
Why do equity holders care more about roe than about​ roa?
svetoff [14.1K]

C. ROE measures how much equity holders are​ earning, while ROA measures how efficiently the bank is being run.

ROE = net income/ shareholder's equity

ROA= net income/total assets

4 0
3 years ago
Other questions:
  • Bissell Company received the following reports of its defined benefit pension plan for the current calendar year: PBO Plan asset
    13·1 answer
  • Primo Corporation acquired 60 percent of Secondo Corporation’s voting common stock. On the date of acquisition, Primo had equipm
    12·1 answer
  • Dolls cost $140 per carton, and trucks cost $430 per carton. if an order comes in for a total of 100 cartons for $28,500, what w
    12·2 answers
  • To buy his favorite car, Larry is planning to accumulate money by investing his Christmas bonuses for the next five years in a s
    12·1 answer
  • As a manager of a retail-clothing store, Lance favors detailed job descriptions, formal rules and regulations, detailed records,
    11·1 answer
  • "The Bank of England is concerned that the British Pound is weakening against the U.S. Dollar. A method for the Bank of England
    6·1 answer
  • Kim has worked in the tech industry for some time and would like to start consulting. In opening her new business, she will need
    7·1 answer
  • The accumulated depletion account is a.an intangible asset account b.reported on the balance sheet as a deduction from the cost
    7·1 answer
  • Wozniacki and Wilcox form Jewel LLC, with each receiving a one-half interest in the capital and profits of the LLC. Wozniacki re
    12·1 answer
  • he number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!