<span>Which of the following best describes how auto insurance companies manage risk? Auto insurance companies will charge rates based on what they think is appropriate in regards to how likely you are to file a claim. They take into account many factors that will relate to filing a claim in the future and what you have done in the past. By evaluating these, they are determining the risk and how to manage it. </span>
Answer:
1 and a half months worth of depreciation
Explanation:
The advantage of starting to depreciate an asset purchased on December is that next year you will be able to depreciate it for a full year under MACRS. Generally, when you purchase an asset, you have to use the half year convention and your depreciation expense for the first year will be low compared to the second year. But if you start depreciating your asset in the current year, even if you purchased it on December and the depreciation expense is not that significant, the next year you will be able to depreciate it at the second year rate.
Answer:
D) Property's fair value at the date of the investment.
Explanation:
When new business is formed from closing the old one, all assets are recorded at fair value.
Thus, all the assets other than cash shall be recorded at their respective fair values in the new business which is a partnership, as the cost or historical value will not display their proportional contributions properly.
Therefore, correct statement is
D) Property's fair value at the date of the investment.
If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stream from <u>convertible debentures.</u>
Convertible bonds have many positive attributes for investors, but the main drawback is that investors accept lower interest rates in exchange for these benefits.
Convertible debentures are fixed rate debentures that pay interest but can be converted into a specified number of ordinary shares or shares. Conversion of a bond into equity may occur at certain times during the life of the bond and is generally at the discretion of the bondholder.
Due to this logic, a convertible bond allows the issuer to indirectly sell its common stock at a price higher than its current price. From a buyer's perspective, convertible bonds are attractive because they offer the opportunity to capture the potentially high yields associated with equities, but also the security of bonds.
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Answer:
d. Vaughn May pay the bonus to Brad's broker, who may then pay Brad.
Explanation:
Generally bonuses are included in the sales contract. If an owner believes that the agent made a great job and deserves an additional bonus, the bonus should be paid to the agent's broker. When the seller is paying the additional money to the broker, they should specify that it belongs to the agent. If the bonus is actually paid to Brad and in what percentage depends on the agreement that he has with his broker.
