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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.

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According to an article in the Wall Street Journal​, KB Home and other builders found demand for new houses increasing in 2017 a
Nadusha1986 [10]

Answer:

Generally speaking, demographic growth can affect the economy quite a lot, but the economy has a very little effect on demographic growth. E.g. the baby boomers were great for the economy during several decades, but there is no clear relationship between population growth and economic activity.

This means that companies like home builders whose demand depends on other factors besides the economy, will be less affected by economic recessions or expansions. E.g. the demographic growth in America was around 0.7% during 2019 and the economy was growing that year.

Actually, the US population has been declining over the last decades. The real growth factor in population has been immigration in the last decades, and that has also been declining lately.

7 0
3 years ago
Electronic audio and video devices are never used by terrorists for surveillance purposes. true or false
hammer [34]

The answer would be false. Since they are terrorists, they would likely scheme and plot in ways where they won’t get caught so it is likely that they will use devices in monitoring their surroundings in a way of helping them carry out their plans, devices they use may be electronic audio and video devices which could be seen in the statement above.

5 0
3 years ago
the audit working paper that reflects the major components of an amount reported in the financial statement is the
KiRa [710]

The audit working paper that reflects the major components of an amount reported in the financial statement is the Lead Schedule.

<h3>What is the Lead Schedule?</h3>
  • A working document known as a lead schedule lists the specific general ledger accounts that make up a line item in the financial statements.
  • The sum for the related line item in a client's financial statements should match the number on the lead schedule.
  • The general ledger (GL) accounts that are present in each financial statement line item and note disclosure are listed in a lead schedule.
  • Each line item or group of related line items on the financial statement would typically have its lead schedule. The final balance in the financial statements and the sum on the lead schedule should match.
  • The lead schedule gives a list of the contents of each line item. This is a useful starting place for your records.

To learn more about the Audit working paper refer to:

brainly.com/question/13812517

#SPJ4

4 0
2 years ago
What does an effective business begin with?
Vilka [71]

Answer:

trust, rules and schedules, a plan on what your selling, those products

Explanation:

I'm just saying what I think makes an effective business

3 0
3 years ago
Oak Tree Farms has common stock outstanding at a price of $13 a share. The total market value of the equity is $435,000. How man
vlada-n [284]

Answer:

13,384.62 shares

Explanation:

Current number of shares = $435,000 / $13

Current number of shares = 33461.53846154

Current number of shares = 33,461.54 shares

Stocks outstanding after the reverse stock split = (33,461.54 shares / 5)*2 = 13384.616 = 13,384.62 shares.

So, 13,384.62 shares of stock will be outstanding if the firm does a reverse stock split of 2-for-5.

3 0
3 years ago
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