Answer:
A small amount of inflation can be really good for the economy. It can boost consumer demand and consumption. This encourages spending and investing.
When resources are low, businesses know that they can increase their prices because people need them desperately.
Answer: One of the costs of not having insurance is the cost of repairing. Another cost is paying insurance premiums. Losses caused by a lack of insurance are the price of not having insurance.
Answer:
All equity plan:
EPS = $160,000 / 42,000 = $3.81
Plan I:
EPS = [$160,000 - ($108,000 x 7%)] / 39,000 = $152,440 / 39,000 = $3.91
Plan II:
EPS = [$160,000 - ($324,000 x 7%)] / 33,000 = $137,320 / 33,000 = $4.16
Plan II is better since the resulting EPS is higher than the other alternatives.
<span>Disability income plans which require that the insurer can never change or alter premium rates are usually considered </span>noncancellable.
Noncancellable means an insurance policy that can not be canceled as long as the customer makes their premium payments. They can not cancel or change the service agreement for any reason if payments are made.
