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vfiekz [6]
2 years ago
6

Insurance is _____________ when the possible loss is relatively large compared to the amount of the premium.

Business
1 answer:
Andreyy892 years ago
8 0

Using economic understanding, insurance is "<u>Economically feasible</u>" when the possible loss is relatively large compared to the premium amount.

This is because when an individual insured on a premium account loses huge properties that are considerably large compared to the premium paid, this is economically feasible to such an individual.

For example, if an individual has his vehicle worth $1 million on damaged but has only paid less than $100,000 as insurance fee, such individual would have his car replaced by the insurance firm, despite only paying 10 percent of the car price as insurance fee.

Thus, this situation is considered <u>economically feasible.</u>

Hence, in this case, it is concluded that the correct answer is "<u>Economically feasible."</u>

Learn more here: brainly.com/question/13769098

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__ occurs when a government demands partial transfer of ownership and management responsibility and imposes regulations to ensur
timurjin [86]

Answer: Option C : Domestication

Explanation: Domestic policy or domestication are administrative decisions that are directly related to all activities and issues within a nation's physical borders. It's a more critical way of looking at foreign policy with a difference.

3 0
2 years ago
Which of the following could be used as a basis to allocate profits among partners who are active in the management of the partn
grandymaker [24]

Answer:

1, 2, 3 & 4

Explanation:

All of the given options could be used as a basis to allocate the profit among partners. Allocation of salaries is also a basis for profit allocation. Salaries of partner is deducted from the net profit on the basis of predetermined ratio or amounts.

The numbers of years can also be a base for the profit allocation. The partner from the long time could have more share than a new partner but it depends on the agreement of all the partners.

The profit can also be based on the the amount of work work done or time spent by each partner. Some associations and firms use this method to allocate the profit.

The most common method of profit allocation is the capital invested in the business. partners are paid on the basis of what they invested in the business.

5 0
3 years ago
55.The manager of Bonzai's Boutique has approved Carla's application for credit. The maximum payment that has been approved is $
rosijanka [135]

Answer:

$1,916.2

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. In this question the payment of $95 per month for 24 months at APR of 16% is an annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where P = Annual payment = $95

First, Calculate the effective rate

EAR = ( 1 + 16%/12 )^12 - 1 = 17.2%

r = rate of return = 17.2% annual = 17.2% / 12 = 1.44% per month

n = number of years = 24 months

Placing value in the Formula

PV of annuity = $95 x [ ( 1- ( 1+ 1.44% )^-24 ) / 1.44% ]

PV of Annuity = $1,916.2

8 0
2 years ago
If we say local materials​
Rus_ich [418]
What? This is a little confusing
6 0
2 years ago
Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no preferred stock. The yield to maturity
Bingel [31]

Answer:

13.86%

Explanation:

WACC = cost of equity x percentage of equity + (cost of debt x percentage of debt x ( 1 - tax rate))

0.65 x e + (9 x 0.6 x 0.35) = 10.90

cost of equity = 13.86%

5 0
2 years ago
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