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
Mariana [72]
3 years ago
11

Mike says, "The possibility that my house may burn isa pure risk for me, but if I buy insurance, it is a speculativerisk for the

insurance company." Do you agree? Why or
Business
1 answer:
PilotLPTM [1.2K]3 years ago
3 0

Answer:

I agree with Mike because pure risks involve only possible losses. Since he owns his house, the possibility of it burning down would represent only a loss to him.

But if he buys insurance, he will pay an insurance premium which means that if the house burns down, the company will lose money, but if the hose doesn't burn down, the insurance company will make a profit. This represents speculative risk because the possibility of a gain and a loss exist.

You might be interested in
The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $
Masteriza [31]

Answer:

a. Journal entry to record music lesson

Date         Account title and Explanation     Debit     Credit

October   Cash                                              $12,500

                       Service revenue                                    $12,500

                (To record music lesson for cash)

b. Journal entry to record prepaid insurance purchase

Date         Account title and Explanation     Debit     Credit

October   Prepaid insurance                         $3,660

                       Cash                                                        $3,660

                 (To record  prepaid insurance paid for next year)

c. Journal entry to record musical equipment purchased

Date         Account title and Explanation     Debit     Credit

October    Equipment                                    $15,500

                        Cash                                                      $15,500

                  (To record musical equipment purchase for cash)

d. Journal entry to record

Date         Account title and Explanation     Debit     Credit

October    Cash                                              $21,000

                        Notes payable                                       $21,000

                  (To record loan taken by signing a note)

6 0
3 years ago
What is the gain or loss from purchasing a put option on $100,000 face value Treasury bonds with a strike price of $90,000 (90 p
Klio2033 [76]

Answer:

Profit of $8,500

Explanation:

Strike Price = $90,000

Premium = $1,500

Break even point = Strike price - Premium

Break even point = $90,000 - $150

Break even point = $88500

Profit = Break even point - Share price

Profit = $88,500 - $80,000

Profit = $8,500

7 0
3 years ago
If you are sharing the road with an impaired driver it is safest to be
nexus9112 [7]
An impaired driver refers to someone who is under the influence of alcohol and is driving. If you are sharing the road with such a person, it is safest to drive behind such a person. You can take further action by parking beside the road, note down the vehicle's number and then call the appropriate patrol or emergency to inform them about the driver. This will ensure that such a driver is gotten off the highway. 
7 0
3 years ago
PLS I NEED THIS FAST !!! IN THE MIDDLE OF THE TEST AND ITS DUE IN A COUPLE OF MINUTES !!! I WILL GIVE BRAINLIEST
weeeeeb [17]

Answer:.

Explanation:

3 0
3 years ago
A buy class situation affects buying center tendencies in different ways. If there are many people involved, the problem definit
Natasha2012 [34]

Answer:

A) new buy

Explanation:

A new buy situation is basically when you have to purchase a product or service for the first time. Since the company hasn't purchased this product or service before, the buying team will have to define several aspects for the first time and that takes time (e.g. potential vendors, different product qualities, etc.). There is no precedent buying situation, so the entire process must be completed.

7 0
3 years ago
Other questions:
  • Times-Roman Publishing Company reports the following amounts in its first three years of operation:
    7·1 answer
  • The existence of "beaten paths" tends to discourage immigration because of the perception that job prospects have been exhausted
    5·1 answer
  • When businesses form voluntary, collaborative partnerships with environmental organizations and regulators to achieve specific o
    13·1 answer
  • When assessing fraud risk,
    8·1 answer
  • When Congress passed the Sarbanes-Oxley Act of 2002, it imposed greater regulation on public companies and their auditors and re
    5·1 answer
  • What do you know, or have heard, about the U.S. Economy currently?
    13·2 answers
  • Suppose that there are only two firms in the automobile industry in a particular country. Which term describes the country's aut
    9·1 answer
  • The Organic Towel Company (OTC) employs 400 workers at its facility in Liverpool, England, where the firm has been manufacturing
    7·1 answer
  • coolidge Company owes $1,000 for merchandise inventory purchased from Ross Company during April. The amount owed is now past-due
    6·1 answer
  • References that employers trust for the most accurate reporting include _____. a. friends b. relatives c. counselors d. parents
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!