Risk pooling allows an insurance carrier to provide an income stream via an immediate annuity, even with its costs and expenses, far more cheaply than a person could on his or her own. Risk pooling is the practice of sharing all risks among a group of insurance companies.
Answer:
The correct answer is A
Explanation:
A substantial understatement may occur when tax return is understated by an amount greater than 10% of the tax required to be shown on the tax return.
Example: If a tax payer that is suppose to report a $6000 tax due and choose to report a $2000 instead, to know if a penalty will be charged or not it has to be greater than 10% of the amount which is suppose to be reported (i.e $6000 x 10% = 600) . therefore in the case shown above the penalty will be applied
The correct answer is the intensive distribution. An
intensive distribution is being defined as having to get products to many
outlets as possible by which the consumers are likely to encounter and see the
product everywhere that they may go to.
Answer:
This means that there is an increase in cash(cash has been collected). And for the unearned revenue which is a liability, there is an increase in the liability
Explanation:
This means that there is an increase in cash(cash has been collected). And for the unearned revenue which is a liability, there is an increase in the liability.
Note: Debit side increases asset(cash) and expenses while credit side decreases liability,income and equity.
Credit side decreases asset(cash) and expenses while debit side increases liability,income and equity.
Answer:
Value added
Explanation:
Value-added - it is the total difference that comes out between the product value in the market and the cost of producing that product. cost of a product is based on the survey which gives the idea that how much cost may be assigned to the product.
The value of this difference help to determine the profit on products.
Higher the value of add, higher will be the charges of product and higher will be the revenue collected.
