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artcher [175]
2 years ago
6

Life insurance companies tend to invest in long-term assets such as loans to manufacturing firms to build factories or to real e

state developers to build shopping malls and skyscrapers. Auto insurers tend to invest in short-term assets such as Treasury bills. What accounts for these differences? ___ generally need to have funds readily available when a policyholder makes a claim, and Treasury bills are highly liquid. ___ have liabilities with a much longer horizon. ___ is expected to pay off in 30 years, say, so that assets with ___ horizons correspond to their ___ liabilities. In general, insurers can limit their risks by matching the terms of their liabilities with the terms of their assets.
automobile insurers life insurance companies a life insurance policy longer longer-term
automobile insurers
life insurance companies
a life insurance policy
longer
longer-term
Business
1 answer:
andriy [413]2 years ago
4 0

Answer:

The answers are:

  1. automobile insurers
  2. life insurance companies
  3. a life insurance policy
  4. longer
  5. longer-term

Explanation:

When a company may need money in a short notice (like auto insurers), they will need to make liquid investments. That means that they can turn their investments into cash very rapidly. Since T-bills are traded all the time, they are very liquid investments, although they aren't very lucrative investments.

On the other hand, companies that know that they will not be needing a lot money promptly (life insurance), can afford to invest in projects with a longer life span that can be more profitable also. Usually liquid investments have smaller rates of return, while long term investments have higher rates of return.

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It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200 that sells for $30. A foreign buyer offer
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Answer:

the net income would be decreased by $3,000

Explanation:

The computation of the net income is shown below;

Total cost is

= $14 + $5

= $19 per unit

And, the Selling price is $18 per unit

Now

Income = Revenue - Cost

= $18 - $19

= -1 per unit

And, finally

Total Income = 3000 units × (-1)

= -$3000

Hence, the net income would be decreased by $3,000

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Gary owns shares in a company called Archibald Industries Inc. The company's financial performance has been declining over the p
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transferability of investor ownership

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Which type of inflation occurs when prices are high, then drop due to lower demand, and then are restored to a previous high lev
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Reflation

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8 0
3 years ago
There are 12 general categories of threat to an organization's people, information, and systems. List at least six of the genera
Alenkinab [10]

Answer:

1. Human Error: an example is disregard to safety measures.

2. Compromises to Intellectual Property: an example is piracy of an organization's product.

3. Forces of Nature: an example is earthquake.

4. Information extortion: an example is coercion or blackmail.

5. Quality of service deviation: an example is an epileptic or poor power supply.

6. Industrial espionage: an example is unethical hacking of data.

Explanation:

A threat to an organization's people, information, and systems is basically any circumstances or events that poses a potential danger, damage or adverse affect to its smooth running.

These threats can be classified into six (6) categories and these are;

1. Human Error or failure: this are errors that arise as a result of having incompetent employees (slips and lapses) or mistakes stemming from the workers. <em>An example of human error is an employee that disregard safety measures. </em>

2. Compromises to Intellectual Property: this usually occurs when an intellectual property is stolen illegally from an organization. <em>An example is piracy of an organization's product.</em>

3. Forces of Nature: this is usually caused by a natural disaster. <em>Examples of forces of nature are flood, earthquake, fire etc. </em>

4. Information extortion: this arises when sensitive data about an organization is held through <em>coercion, bribery or computer hacking</em>.

5. Quality of service deviation: this would occur when there's a shortage in the quality of service received by an organization, contrary to what is expected or required. <em>Examples are poor power supply, poor internet service etc. </em>

6. Industrial espionage: this is as a result of loosing sensitive data to <em>unauthorized individuals or hackers.</em>

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3 years ago
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