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3 years ago

How is insurance a trade-off between risk and cost?

Business

1 answer:

Solnce55 [7]3 years ago

8 0

Explanation:

Risk is involved in all types of investment the higher risk yields higher returns while lower risk yields lower returns. The trade off which the investor faces in making investment decisions is the risk return trade off.

In insurance the cost of risk includes the expected losses which are uncertain. The trade off which is provided by insurance can be direct and indirect losses, internal risk reduction and residual uncertainty. Insurance reduces the expected losses and eliminate the risk of loss by providing cover the cost of which depends on the nature of the risk.

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2. List and explain the components of the money supply

meriva

Answer:

Currency such as notes and coins with the people.

Demand deposits with the banks such as savings and current account.

Time deposit with the bank such as Fixed deposit and recurring deposit.

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3 years ago

Josh has been asked to be a part of a new business venture that develops wind energy technologies. since the business involves h

IrinaVladis [17]

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3 years ago

The responsibility for evaluating new technologies, new ideas, and new capabilities and identifying those that are most relevant

Rasek [7]

The responsibility for evaluating new technologies, new ideas, and new capabilities and identifying those that are most relevant to the organization is typically assigned to the Chief technology officer (CTO)

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The Chief Technology Officer (CTO) is the executive responsible for overseeing the entire IT department and integrating business needs and requirements into IT planning and operations. It's important to distinguish their role from that of the Chief Information Officer (CIO). The Chief Information Officer (CIO) role focuses on technology that internally guides an organization through the management of its infrastructure. The Chief Technology Officer has a job description focused on developing technologies for customer sales and the external growth of the company. The CTO and her CIO often combine their technical and engineering knowledge to work together for the benefit of the entire organization.

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2 years ago

The Home and Garden (HG) chain of superstores imports decorative planters from Italy. Demand for the planters is stable and aver

Korolek [52]

Answer:

The average inventory which HG should carry during the year is 5,000 units.

Explanation:

Economic Order Quantity is the ideal inventory procurement which minimizes holding and ordering cost. The EOQ is used by businesses in order to determine the best possible inventory holding.

EOQ = $\sqrt{\frac{2*Annual Demand * Ordering Cost}{Annual Holding Cost} }$

EOQ = $\sqrt\frac{2*7,500*5,000}{10*0.3}$

EOQ = 5,000 units

6 0

3 years ago

Galen Company income under variable costing is $1,050,000. Fixed production costs in ending inventory are $300,000 and $250,000

lana [24]

Answer:

Income under absorption costing = $1,100,000

Explanation:

Marginal and absorption costing are two different methods to deal with fixed production overheads and and decide whether or not they are included in valuation of inventory.

Valuation of inventory

Opening and closing inventory are valued at variable cost under variable costing. Whereas in absorption costing, opening and closing inventory are valued at full production cost (including fixed production overheads).

Reconciling profits reported under two different methods

When inventory levels increase or decrease during a period then profits will differ under absorption and marginal costing because of fixed production cost.

Net Income under absorption costing = Income under variable costing + fixed production cost in ending inventory – fixed production cost in beginning inventory

= $1,050,000 + $300,000 - $250,000

= $1,100,000

7 0

3 years ago