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Vinvika [58]
3 years ago
14

A man purchased a $23,000, 1-year term-life insurance policy for $425. Assuming that the probability that he will live for anoth

er year is 0.982, find the company's expected net gain.
Business
1 answer:
Katena32 [7]3 years ago
8 0

<u>Given:</u>

Insurance amount = $23000

Policy cost = $425

Probability of living = 0.982

<u>To find:</u>

The expected net gain of the company

<u>Solution:</u>

The expected net gain of the company can be calculated by the following steps,

\text{Expected pay-out = Insured amount } \times (1-\text{ Probability})\\\\\Rightarrow\$23000\times(1-0.982)\rightarrow\$23000\times0.018\rightarrow\$414

The company's expected gain would be \$425-\$414=\$11

Therefore, the company's expected gain is $11.

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The person is WILLIAMS JAMES.
William James is an American psychologist and philosopher. He was a leader of the psychological movement of functionalism.
One of William James quote says that the path to cheerfulness is to sit cheerfully and to act and speak as if cheerfulness is already there
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The study of​ ________ reveals a number of ways to enhance your relationship strategy and add value. this helps the salesperson
tamaranim1 [39]

The answer to the blank space is etiquette and manners.

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4 0
3 years ago
The credit terms offered by Neutron Enterprise are 2/10, n/30. Neutron sold goods on account to James Company on Jun 14 for $300
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Answer:

Cash A/C            Debit                    $300

  To James company                                  $300

(Amount collected from James Company for credit sale)

Explanation:

Cash A/C            Debit                    $300

  To James company                                  $300

(Amount collected from James Company for credit sale)

Note: The terms here provided that, 2/10, n/30.

Which means that 2% discount if payment made within 10 days, and total 30 days credit allowed.

Here the sales were made on 14 June, and payment received on 27 June that is it took more than 10 days as 10 days complete on 24 June.

Therefore, no discount will be offered.

5 0
3 years ago
In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for a. oper
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Answer:

The correct answer is letter "A": operating activities.

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Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.

When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.

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3 years ago
A company's ability to achieve and maintain a unique and valuable competitive position both within a nation and globally, genera
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It is known as competitive advantage.

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It is the favorable position that a firm seeks in order to outperform its competition.

Competitive advantages are classified into two types: comparative advantages and differentiated advantages.

A company's comparative advantage is its ability to manufacture something more effectively than a rival, resulting in larger profit margins.

A differential advantage occurs when a company's goods are seen to be both distinctive and of greater quality than those of a rival.

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5 0
2 years ago
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