Question Completion:
Group of answer choices:
a. Due to the possibility of earthquake damage, Gubenator should decline coverage for the Freedom Tower.
b. Given the notoriety of the tower and the likelihood of positive press for providing coverage, Gubenator should insure the Freedom Tower.
c. Gubenator has the financial capacity to issue the policy.
d. Gubenator should insure the Freedom Tower only if it can obtain reinsurance for part of the risk from other insurance companies, since a total loss could be catastrophic to Gubenator.
Answer:
American Builders, Inc (Freedom Tower) and Gubenator Insurance Company
d. Gubenator should insure the Freedom Tower only if it can obtain reinsurance for part of the risk from other insurance companies, since a total loss could be catastrophic to Gubenator.
Explanation:
Option A establishes that the earthquake occurrence is a possibility and not a probability. That means it cannot be reasonably estimated that an earthquake may occur. Gubernator exists to insure property against the occurrence of risky events. It should go ahead and do its business. And it can spread the risk with other insurance companies through Reinsurance. Gubernator is not in the business of looking for cheap publicity, so option B is ruled out. Given that the Freedom Tower will only be one of the many properties insured by Gubernator, we cannot use its current capital to judge its capacity to handle the Freedom Tower; thus ruling out option C.
Answer:
The correct answer is "32.076%".
Explanation:
Given:
Initial investment,
= $500,000
Cash inflows,
= $500,000
The floatation cost will be:
=
= ($)
The total cost will be:
=
=
=
hence,
The rate of return will be:
=
=
=
=
= (%)
Answer:
revenue tariff
Explanation:
A revenue tariff is a tax levied on imported goods or services whose main purpose is to increase government revenue. It differs from other types of tariffs whose goal is to protect domestic products. E.g. a flat tariff levied on all types of imported goods.
Answer:
The correct answer is: Increase the price in order to increase revenue.
Explanation:
To begin with, the price elasticity of demand for a product is the concept known in the economics that refers to the variation that happens in the quantity demanded of a product when the price of it changes a bit. Moreover, when the price elasticity of demand is 0.5 the product is relatively inelastic and therefore that if the price increases the quantity demanded will basically stay the same more less and that is why if the price increases the product will no suffer changes in its quantity demanded and that will cause the supplier to earn a higher total revenue.
Answer:
The marketing positioning in play is a Brand promise.
Explanation:
A brand promise is a statement usually short that communicates what the customers expect from the brand. It is a kind of assurance to the customer that the brand will fulfill their proclaimed statement. The promise can be value satisfaction or even a given experience. A brand promise is a very crucial marketing strategy that needs to be chosen carefully. Most brands always choose to formulate a brand promise that is distinct, this helps the customers to remember it easily. It should be kept short and straight-forward. Research has shown that the nature of a brand promise reflects on the number of customers one attracts. A unique brand promise can set a firm above the competition.
In our case, Alan uses the tagline, "The best sunsets in the park". This is a typical example of a brand promise. Since Alan runs a residential lodge in a national park, he alludes that his lodges have the best sunsets in the park. This makes his lodging business unique since he has made a promise to the customers that if they are to experience the best sunsets, Alan's residential lodge will be the best option.