Answer:
Health; automobile.
Explanation:
In Insurance, risk tolerance refers to the willingness of an individual or organization to take a risk in business transactions in order to get a potentially positive reward.
Simply stated, risk tolerance in insurance is the willingness of an insured individual to increase his or her Self-Insured Retentions (SIRs) or deductibles by the insurer. For instance, the high risk associated with investments such as stocks, high-yield bonds, is often perceived by investors to be worth the higher reward such investment brings.
Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.
This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.
In this scenario, David has just joined a new company. His employer offers a number of different insurance policies as one of its employee benefits. For example, his employer’s health insurance covers prescription drugs and immunizations. David will also be receiving automobile insurance at no cost from his employer.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Dubberly Corporation's cost formula for its manufacturing overhead is $31,100 per month plus $50 per machine-hour. For March, the company planned for activity of 8,000 machine-hours, but the actual level of activity was 7,930 machine-hours. The actual manufacturing overhead for the month was $454,110.
activity variance for manufacturing overhead= (50*8000) - (454,110 - 31,100)= 23,010 unfavorable.
Answer:
Explanation:
Adjusted Present Value (APV) and Net Present Value (NPV) are tools used in valuation of business operations or business projects. APV differs from NPV as the former uses cost of equity as the discount rate whereas the latter uses the WACC(weighted average cost of capital). Other business valuation methods are Payback period which is used to determine the number of years it takes for a project's future cashflows to fully recover the initial amount invested. Another example is Internal Rate of Return (IRR) which is the rate that determines how attractive a project; that which makes the NPV equal to zero.
Answer:
sustainable growth rate for Crash Davis Driving School: 9.044%
Explanation:
0.133 x (1-0.32) = 0.09044
The firm will grow as the amount that isn't paid as dividends increase the equity through retained earnings. Because both, common sense the acounting equaition if the earnings are retained they will be investment and assets will increase:
Assuming the company thakes no debt for the period then:
Assets = liab + equity
Assets = 0 + increase in RE
Assets = + increase in RE
Thus, this is the rate at which assets grows without taking new debt
