Answer: This rate setting scheme creates an adverse selection problem: Homeowners with houses on unstable soil are more likely to purchase insurance than homeowners with houses that rest on bedrock
Explanation:
California has its own earthquake insurance program for homeowners and the rates vary by the ZIP code, which depends on the proximity of nearest fault line.
However, critics claim that the people who set the rates ignored soil type. Some houses rest on bedrock while others sit on unstable soil. If the soil type is used, rate setting scheme creates an adverse selection problem.
An adverse selection problem is tendency of those in high-risk areas to purchase the insurance claim because there are higher chances they may get affected. Therefore, the homeowners with houses on unstable soil will more like buy insurance than the homeowners with houses that rest on bedrock.
<span>Shale oil mining corporation is a us employer shale oil and other us employers must perform 1-9 verifications for </span>new hires who work under the employer's direct supervision <span>including contractors and day workers.
1-9 verifications is required for all employee from another country to work in united states. This verification is required by homeland security in order to control the background check</span>
Answer: (C) Revenue recognition principle
Explanation:
The revenue recognition is one of the type of principle that help[s in understanding the various types of accounts based guidelines that helps in identifying the particular condition in which the revenue is basically recognize.
The importance of third principle is that it helps in ensure the actual loss or the profit Margin that maintains the financial credibility.
According to the given question, the revenue recognition principle basically accepting the various types of accounting principle that helps in satisfying the performance obligations.
Therefore, Option (C) is correct answer.
The economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable products that society needs. Socioeconomic model of social responsibility, which places emphasis not only on profits but also on the impact of business decisions on society.
https://quizlet.com/82572828/chapter-2-business-ethics-social-responsibility-flash-cards/
