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Mariana [72]
4 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]4 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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Scenario II:
solmaris [256]

Answer:

Pay tuition first

Explanation:

Mrs. Das should pay the tuition fee of her children first from the $5000 balance with her, this is to enable the children take their exams without any distraction. Failure to pay their tuition may also mean that the children will spend an additional year in some cases. Therefore to avoid inflicting psychological distress on the children, paying the children's tuition will be made priority.

Also, settling Avon before the due date is important too and if I were in her shoes may decide to return or sell some of the goods purchased from her because it could be seen that Mrs. Das was carried away by Avon's stock and purchased more than those things which they needed most importantly.

3 0
3 years ago
Which of the following statements is CORRECT? Question 9 options: The AFN equation for forecasting funds requirements requires o
EastWind [94]

AFN has negative and positive sides. The correct statement is A negative AFN indicates that retained earnings and spontaneous liabilities are far more than sufficient to finance the additional assets needed.

  • AFN is known as Projected increase in assets – spontaneous increase in liabilities – any increase in retained earnings.

When the AFN value is negative, it means the action or project that is underwork will bring about extra income for the company, which can be invested in another place.

Additional funds needed (AFN) is known as financial term used when a business intends to widen its operations.

Learn more About AFN from

brainly.com/question/13203205

3 0
3 years ago
On December 31, 2020, McDaniel Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2021. On J
icang [17]

Answer:

Current Liabilities:Notes Payable 250,000

Long-term Debt:Notes Payable 950,000

Explanation:

Calculation to Show how the $1,200,000 of short-term debt should be presented on the December 31, 2017, balance sheet.

Hattie McDaniel Company

Partial Balance Sheet

December 31, 2017

CURRENT LIABILITIES

Notes Payable 250,000

($1,200,000-$950,000)

LONG-TERM DEBT

Notes Payable 950,000

Therefore how the $1,200,000 of short-term debt should be presented on the December 31, 2017, balance sheet is:

Current Liabilities:Notes Payable 250,000

Long-term Debt:Notes Payable 950,000

4 0
3 years ago
Which of the following will cause the demand curve to​ shift? A. a change in the cost of raw materials B. more firms in the mark
salantis [7]

Answer:

D. a change in consumer income

Explanation:

There are two main reason for shift in demand curve left or right in addition to price:

  1. Change in consumer income.
  2. Change in preference.

Consumer income or earning affect the demand curve as according income of consumer, thier preference and priority changes. Example: Daily wages labor may have very less demand for Domino´s Pizza or starbucks coffee, however, manager of any MNC may have higher demand for Domino´s Pizza or starbuck coffee.

7 0
3 years ago
The question is; create an innovative mission statement for Roberto Pesi’s restaurant inc. Explain the statement..(i will mark a
xeze [42]

Answer:

Roberto Pesi Restaurants inc. mission is to offer delicious Italian and fast food in Toronto that will create a unique experience to each customer making them wanting to comeback. for this we have three restaurants that will satisfy the nutritional need of every single customer.  

Explanation:

The mission of an enterprise must describe the desire goal of an enterprise its values and what kind of product or service it provides and in which area is situated its operation.

7 0
3 years ago
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