Risk is the exposure to uncertainty. An insurance policy is an exchange of a certain loss (the premium) to have another party (the insurer) absorb all or part of the negative consequence of being exposed to that uncertainty.
<span>For example, you have virtually no risk of dying in an airplane crash if you do not get in an airplane. You are not exposed, other than that a plane could fall on you. Likewise, if you jump out of an airplane without a parachute, there is no risk. You have all the exposure in the world, but it is certain that you will be killed. There may be some trivial risk that you live but it is so small that it can be ignored. </span>
<span>You need two things, uncertainty and exposure. Life insurance is a good example, you know for certain that you will die, you do not know when. The insurer covers you against premature death. Its reverse, the immediate annuity, covers you against living too long and running out of investment resources.</span>
The amount of interest revenue that will be recorded in the books of Jovel Company as on December 31 will be $1,000.
<h3>What is interest revenue?</h3>
The revenue which is generated by a company by the way of earnings made through interest over debts during a financial period is known as an interest revenue.
Using the above information, it can be ascertained that the total interest revenue over a loan of $100,000 will be $6,000, however, it was issued on November 1, and accounts close on December 31, so the interest revenue for 2 months will be computed as under,
Thus, the interest revenue has been computed as above.
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Based on the scenario above, the type of legal and financial
jeopardy is an example of a type of control called the deterrence. This is an
act where in the individual is likely engaging in of having to discourage an
action to prevent it from happening or that they are likely to promote doubt or
fear in a certain event.
Answer:
The questions related to where, when and how are more appropriate for procedures or guidelines than policies or standards, which require detail that is more at the level of what, who and why .
Explanation:
In the first part of the question, the importance is given for procedure or guidelines. That's why where, when and how is used whereas what, who and why shows the policies or standard as it require more detailing at each level.
The where, when and how shows the vital importance of the particular thing whereas the what, who and why show the impacts of the events.
Thus, The questions related to where, when and how are more appropriate for procedures or guidelines than policies or standards, which require detail that is more at the level of what, who and why
Answer:
I took advice from Saving and Budgeting and implemented the 50-20-30 rule.
Explanation:
The rule is as follows:
- Spend 50% of your income on the necessities, such as paying for rent, food, mortgage etc
- Using 20% of your income to either pay of debt or if you have no debt, deposit it in a savings account
- Use the remaining 30% for 'discretionary' pending inducing socializing, a travelling or some hobbies.
I personally did not have any debt so I was able to save a lot of money by putting away 20% of my income. Of course, this meant, I had little left for luxuries, but the rule forced me to live a more disciplined life.