characteristics of insurance that distinguish insurance contracts from other general contract



Answers

Answer 1

Answer:

When attempting to get a better understanding of insurance, there are four unique characteristics that need to be done and they are conditional, unilateral, adhesion, and aleatory.


Related Questions

Refer to Exhibit 9.3, which shows the cost and revenue curves for a non-discriminating monopolist. The total cost incurred by the monopolist for producing the profit-maximizing output is _____ Group of answer choices $16,500. $24,200. $16,200. $19,800. $30,800.

Answers

Answer: $19,800

Explanation;

The Monopolist will maximize output at the point where Marginal Revenue equals Marginal Cost because at this point all resources are being fully utilized.

Total Cost = Average Total Cost * Quantity produced

At the point where MR=MC, the quantity produced is 1,100 units.

The Average Total Cost tallying with this is $18 per unit.

Total Cost = 18 * 1,100

= $19,800

The IRS: a. requires official tax forms be obtained at the local IRS office. b. provides information on how to choose a stock. c. has an app for mobile phones. d. links to the H

Answers

Answer:

c. has an app for mobile phones.

Explanation:

The IRS refers to the Internal Revenue service handled by the government agency based on the Unites States. It is responsible for the tax collection and the imposition of the taxation law.

To check the status of your tax the IRS allows the application in the mobile devices so that everyone could access it anywhere anytime.

Therefore the correct option is c.

It costs Coronado Industries $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1800 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Coronado has sufficient unused capacity to produce the 1800 scales. If the special order is accepted, what will be the effect on net income? $5400 decrease $3600 increase $27000 increase $3600 decrease

Answers

Answer:

$3600 increase

Explanation:

The computation of the effect on the net income is shown below:

Revenue arises from special order

= ($15 - $1) ×  1,800

= 25,200

Cost for the special order

= $12 × 1,800

= $21,600

Now in case when the special order is accepted

So, the effect on the net income is

= Revenues - cost  

= $25,200 - $21,600

= $3,600 increase

27. Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be

Answers

The question is incomplete. The complete question is,

Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be  

Year       Dividend

1        $1.20

2         1.44

3        1.73

4         2.07

After this initial period of super growth, the rate of increase in the dividend should decline to 8 percent. If you want to earn 12 percent on investments in common stock, what is the maximum you should pay for this stock?

Answer:

The maximum that should be paid for the stock today is $40.29

Explanation:

We will use the two stage dividend growth model of DDM to calculate the price of the stock today. The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price under the two stage model is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2 + ... + Dn / (1+r)^n  +  [Dn * (1+g2) / (r - g2)] / (1+r)^n

P0 = 1.2 / (1+0.12)  +  1.44 / (1+0.12)^2  +  1.73 / (1+0.12)^3  +  2.07 * (1+0.12)^4  +  

[2.07 * (1+0.08) / (0.12 - 0.08)] / (1+0.12)^4

P0 = $40.2853 rounded off to $40.29

Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $297,000, total variable expenses were $222,750, and fixed expenses were $36,900.Required:
1. What is the companyâs contribution margin (CM) ratio?
2. Estimate the change in the companyâs net operating income if it were to increase its total sales by $1,800.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Sales in units= 42,000

Total sales= $297,000

Total variable expenses= $222,750

Total fixed expenses= $36,900

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= (sales - total variable cost) / sales

contribution margin ratio= (297,000 - 222,750) / 297,000

contribution margin ratio= 0.25

Now, the effect on the income of an increase in sales:

Effect on income= contribution margin ratio*increase in sales

Effect on income= 0.25*1,800

Effect on income= $450 increase

Equipment was acquired on January 1, 2021, for $33,000 with an estimated four-year life and $2,000 residual value. The company uses straight-line depreciation. Record the gain or loss if the equipment was sold on December 31, 2023, for $10,600.

Answers

Answer:

Gain= $850

Explanation:

Giving the following information:

Purchase price= $33,000

Useful life= 4 years

Residual value= $2,000

Sale= $10,600.

First, we need to calculate the annual depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (33,000 - 2,000)/4= $7,750

Now, we can calculate the accumulated depreciation:

Accumulated depreciation= 7,750*3= $23,250

To calculate the gain or loss, we need to use the following formula:

Gain/loss= selling price - book value

Book value= purchase price - accumulated depreciation

Book value= 33,000 - 23,250= $9,750

Gain/loss= 10,600 - 9,750

Gain= $850

You're prepared to make monthly payments of $390, beginning at the end of this month, into an account that pays 7 percent interest compounded monthly. How many payments will you have made when your account balance reaches $23,087?

Answers

Answer:

$ 11,111,000

Hope this helps

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The following are all examples of abnormal items disclosed by the company, except: (4 points) A) Goodwill Impairment Charges B) Royalty Expense C) Intangible Asset Impairment Charges D) Restructuring Charges

Answers

Answer:

Correct Answer:

B) Royalty Expense

Explanation:

A royalty is a payment made by one party, franchisee to another that owns a particular asset, franchisor for the right to ongoing use of that asset. The expenses incurred in executing this payment is called royalty expenses.

If assets are $365,000 and equity is $120,000, then liabilities are: __________

a. $120,000
b. $245.000
c. $365,000
d. $485,000.
e. $610,000.

Answers

Answer:

b. $245.000

Explanation:

The computation of the liabilities is shown below:

As we know that

The accounting equation comprise  of

total assets = total liabilities + total equity

where,

total assets = $365,000

Total equity = $120,000

So, the total liabilities is

= total assets - total equity

= $365,000 - $120,000

= $245,000

Hence, the total liabilities is b. $245.000

Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock

Answers

Complete Question:

BenchMark, Inc., just paid a dividend of $3.45 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent on the stock for the first three years, a return of 11 percent for the next three years, and then a return of 9 percent thereafter. What is the current share price for the stock.

Answer:

BenchMark, Inc.

The current share price for the stock is:

$43.13

Explanation:

a) Data and Calculations:

Dividend per share = $3.45

Growth rate = 5%

Investors' required rate of return = 13%

Stock value = Dividend per share / (Required Rate of Return – Dividend Growth Rate)

= $3.45/(0.13 - 0.05)

= $43.13

b) We can calculate BenchMark's current share price, by dividing the dividend per share by the investors' required rate of return after subtracting the growth rate from the required rate of return.

"A customer makes an investment in a CMO. In a given year, she receives $24,000 of payments, of which $6,000 is principal and $18,000 is interest. Which statement is TRUE about the taxation of the payments received?"

Answers

Answer:

Only the interest amount received is taxable.

Explanation:

CMO refers to Collateralised Mortgage Operation in this whenever one receives a payment it is joint of some principal and remaining amount as an interest.

The principal received only decreases the debt, that is created in a CMO. Thus, is not to be considered as an income in any manner.

Interest received is a part of income as do not decrease the liability of debt, rather increases the revenue, and is therefore, taxable.

The top four most economically globalized countries according to KOF Swiss Economic Instituteâs 2007 rankings include:___________.

Answers

Answer:

The top four most economically globalized countries according to KOF Swiss Economic Instituteâs 2017 rankings include:___________.

Netherlands, Ireland, Belgium, and Austria.

Explanation:

The KOF Swiss Economic Institute's ranking of the most economically globalized countries is a ranking of the countries with businesses that have global influence and presence.  The Institute which an index called the KOF Globalisation Index to measure the economic, social and political dimensions of globalisation and rank countries according to their performances.

"A firm holds a joint cash account for a husband and wife. The wife calls the registered representative and says "Sell 500 shares of ABC out of the account immediately and send a check for the proceeds made out to my name". The representative should inform the wife that:"

Answers

Answer:

The representative should inform the wife that: it would be an impossible task to do. This is because, the account which she held in the firm happened to be a joint account with the husband. In order to sell 500 shares, she would need to obtain approval from her husband in form of signature.

Explanation:

select the department of defense's (dod's) decision-support system that this statement describes: "This system uses milestones to oversee and manage acquisition programs."

Answers

Idk this but u can google it and the answer would be right there

A company uses the FIFO method for inventory costing. During a period, a production department had 56,000 units in beginning goods in process inventory which were 32% complete; the department completed and transferred 167,000 units. At the end of the period, 14,000 units were in the ending goods in process inventory and are 67% complete.

Compute the number of equivalent units produced by the department.

a. 181,000
b. 158,460
c. 167,000
d. 176,380
e. 111,000

Answers

Answer:

158460 ( B )

Explanation:

Given data :

production department ; 56000 units

process inventory = 32% = 0.32

completed and transferred units = 167000

ending goods units = 14000,      67% complete = 0.67

attached below is the table representation of the solution

The number of equivalent units produced by the department

= ∑ all the variables listed on the table

= 38080 + 11100 + 9380 = 158460

An investor receives a 15% total return by purchasing a stock for $40 and selling it after one year with a 10% capital gain. How much was received in dividend income during the year

Answers

Answer:

$2

Explanation:

The computation of the dividend income received during the year is shown below:

Before computing the dividend income first we have to determine the dividend percentage which is

= Total return received - capital gain after one year

= 15% - 10%

= 5%

Now the dividend income is

= Dividend percentage × stock price

= 5% × $40

= $2

A company is using a mobile device deployment model in which employees use their personal devices for work at their own discretion. Some of the problems the company is encountering include the following:______. A. There is no standardization. Employees ask for reimbursement for their devices. B. Employees do not replace their devices often enough to keep them running efficiently. C. The company does not have enough control over the devices. Which of the following is a deployment model that would help the company overcome these problems?A. BYODB. VDIC. COPED. CYOD

Answers

Answer:

no entiendo un carajoooooool

How should an organization design its structure and culture to obtain a core competence in manufacturing and in research and development? What is your reasoning?

Answers

Answer and Explanation:

core competency of an organization comprise it's multiple resource, capabilities and skills that gives it a competitive advantage in the market. It was originated in management theory by C. K. Prahalad and Gary Hamel.

For an organization to have core competencies in manufacturing and also research and development putting it's organizational structure and culture to use, it has to:

create a flexible and somewhat independent structure for it's research and development department such that innovation is easy. Control must be decentralized and the team must come first

For the manufacturing department, an organic and participative approach should be encouraged. This would allow inclusive management such that workers are included in decision making processes. Managers should also be given more independence while workers should increasingly be empowered

the organization should also take stringent measures in employing the right people for the research and development as well as the manufacturing department such that these individuals are qualified and possess the needed expertise for their areas. Staff should equally be empowered through constant education and new skill acquisitions and be allowed to impart this knowledge on other staff by encouraging transfers in global expansion.

Holiday corp has two divisions quail and marlin. quail produces a widget that marlin could use in its production. quails variable cost are $4 per widget while the fulls cost is $7. widgets sell on the open market for $12 each.
A. if quail has excess capacity, what would be the cost savings for Holiday if the transfer was made and marlin currently is purchasing 100,000 units on the open market.
b. what would be the maximum transfer price?
c. if quail is operating at capacity, what would be the minimum transfer price?

Answers

Answer:

a. $800,000

b. $12

c. $12

Explanation:

Cost Savings :

Market Price  ($12 × 100,000 units)                                    $1,200,000

Less Minimum Transfer Price ( $4 × 100,000 units)           ($400,000)

Savings                                                                                   $800,000

Maximum Transfer Price is $12

If quail is operating at capacity, units to meet internal demand would need to be recovered from the external market and that creates an opportunity cost :

Minimum transfer price = Variable Cost per unit - Internal Savings + Opportunity Cost per unit

                                       = $4 + ($12 - $4)

                                       = $4 + $8

                                       = $12

You are told that for a certain linear program, that the Reduced Cost for x3 is -$0.78 and that the Shadow Price for Constraint 3 is $2.15. The total revenue is currently $256.58. If the producer decided to purchase three more units of b3 (input 3), what would happen to the firm's total revenue?

Answers

Answer:

The firm's Total revenue will increase

Explanation:

Based on the information given we were told that the total revenue is currently an amount of $256.58 which means that If the producer decided to purchase three more units of b3, what would happen to the firm's total revenue is that the firm's TOTAL REVENUE will tend to increase reason been that the firm is selling more and in a situation where the numbers of units sold increase this means that the TOTAL REVENUE will as well increase.

Hence the increases in the price of the product for every single unit sold will lead to increases in TOTAL REVENUE.

Which of the following statements is true of radio-frequency identification (RFID) tags?
a. They can help identify genuine products from counterfeit knock-offs.
b. They are designed to learn more about customers' wants, needs, and behaviors.
c. They help firms gain competitive advantage by forecasting customer retention rates.
d. They help identify which customers should be the focus of targeted marketing initiatives.

Answers

Answer:

Correct Answer:

a. They can help identify genuine products from counterfeit knock-offs.

Explanation:

Radio-frequency identification (RFID) tags refers to a technology whereby digital data encoded in RFID tags  are captured by a reader via radio waves. In general, RFID is similar to barcoding in that data from a tag or label are captured by a device that stores the data in a database.

Answer:

a. They can help identify genuine products from counterfeit knock-offs.

Explanation:

Radio-frequency identification: The term "radio-frequency identification" is also referred as RFID, and is described as a phenomenon that utilizes "electromagnetic fields" to track and identify different tags attached to various objects automatically. Therefore, a radio-frequency identification tag generally possesses a small "radio transponder" which is a radio transmitter and receiver. Lastly, when it is being triggered by any "electromagnetic interrogation pulse" from a closed RFID "reader device", then the tag tends to transmit some digital data i.e, inventory number to the reader.

You write one JNJ February 70 put for a premium of $5. Ignoring transactions costs, what is the break-even price of this position?

Answers

Answer:

$65

Explanation:

The calculation of the break even price for this position is given elow:

Break even price is

= Strike price - premium

= $70 - $5

= $65

The stock goes increase i.e. upwards to $65 so the amount that lose is only $5 but it declines than the stock would be $0

Therefore, the break even price of this position is $65

So, by using the above formula we can get the break even price and the same is to be considered

Friday Night, Inc. manufactures high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information related to Friday Night's capacity and budgeted fixed manufacturing costs for 2019:
Budgeted Fixed Days of Hours of
Denominator-Level Manufacturing Production Production Boxes
Capacity Concept Overhead per Period per Period per Day per Hour
Theoretical capacity $4,000,000 362 22 300
Practical capacity $4,000,000 310 16 250
Normal capacity $4,000,000 310 16 175
Master budget capacity $4,000,000 310 16 200
Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Actual variable manufacturing costs were $1,762,200 (there are no variable cost variances). Actual fixed manufacturing overhead costs were $4,000,000, the same as budgeted. What is the total cost per unit (box of wine) when practical capacity is used?
a. $3.45
b. $5.01
c. $5.81
d. $6.39

Answers

Answer:

b. $5.01

Explanation:

practical capacity = 310 x 16 x 250 = 1,240,000 boxes of wine per year

fixed overhead costs = $4,000,000 / 1,240,000 = $3.23 per box of wine

variable manufacturing costs = $1,762,200 / 990,000 = $1.78 per box of wine

total production costs per unit when practical capacity is used = $3.23 + $1.78 = $5.01 per box of wine

Sourcing goods and services from different locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production. This practice is made possible by the globalization of what? a. Finance. b. Production. c. Markets. d. Process design.

Answers

Answer:

b. Production

Explanation:

Global Value Chains have been successful over the years due to most components being produced in the country where it is cheaper to do so and then the final output is integrated in other country.

Thus globalization of production has enabled firms to take advantage of national differences in the cost and quality of factors of production.

"A 7%, 15-year corporate bond is priced to yield 7.50%. For an investor in the 28% tax bracket, the equivalent tax free yield is:"

Answers

Answer:

The equivalent tax-free yield is:

10.42%

Explanation:

Tax-free yield = 7.5%/(1 - 28%)

= 10.42%

This equivalent tax-free yield is the yield of the 7%, 15-year corporate bond that will make it comparable to a municipal bond that is tax-free.  To calculate the tax-free yield, we divide the yield rate by the inverse of the tax bracket.  In this case, this yields 10.42%.  This implies that for this corporate bond to be valued equally with a municipal tax-free bond, the yield must be at least 10.42%.

__ measures a company's ability to pay its debt while ___ measures the company's ability to earn a profit

Answers

Answer:

Solvency ratio __ measures a company's ability to pay its debt while ___Profitability ratio measures the company's ability to earn a profit

Explanation:

a) For instance, let us assume a hypothetical company called Midex Corporation.  The financial measure that shows the company's ability to meet its debt obligations is known as the solvency ratio.  For prospective fund lenders, they find it useful in order to decide whether to go ahead with requests for more funding. This implies that the solvency ratio indicates whether  Midex's cash flow is sufficient to meet its short-and long-term liabilities.  To calculate the solvency ratio, divide the company's after-tax net operating income by its total debt obligations. Midex's net after-tax income is derived by adding the non-cash expenses, such as depreciation and amortization, back to the net income.

b) In the same light, Midex Corporation's profitability ratios measure the corporation's ability to earn a profit in relation to these bases: its sales revenue, operating costs, balance sheet assets, and shareholders' equity. These financial metrics can also show how well Midex has managed its  assets to produce profits and value for its shareholders.

Which type of disclosure must be signed by the buyer and the seller in a nonresidential transaction?

Answers

Answer: Request to use designated sales associate representation

Explanation: The buyer and the seller must sign the Request to use designated sales associate representation agreement, or disclosur notice stating that their that their assets meets the required or stated thresholds and stating that the broker must use the designated sales associate representation form When required.

Net income was $448600 in the current year and $365500 in the prior year. The year to year percentage change in net income is closest to:__________.

Answers

Answer:

The answer is 22.74 perfect

Explanation:

The percentage change is:

[Future value(Current year net income) / Present Value(Prior year net income)] - 1

($448,600/$365,500) - 1

1.2274- 1

0.2274

Expressed as a percentage

22.74 percent.

Alternatively:

(Future value - present value) / present value

($448,600 - $365,500) / $365,500

$83,100/$365,500

0.2274

Expressed as a percentage

= 22.74 percent.

Papenfuss Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity level 80 guests Variable overhead costs: Supplies $ 144.00 Laundry 600.00 Fixed overhead costs: Utilities 444.00 Salaries and wages 5,120.00 Depreciation 2,900.00 Total overhead cost $ 9,208.00 The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 70 guests

Answers

Answer: $9,115‬

Explanation:

Total budgeted overhead cost =Variable Costs + Overhead costs

The variable costs listed are for an activity level of 80 guests but 70 guests will be coming.

The variable costs will be;

Supplies

= (144 / 80) * 70

= $126

Laundry

= ( 600/80 ) * 70

= $525

The rest are fixed costs so will stay the same regardless of activity level.

Total budgeted overhead cost = 126 + 525 + 444 + 5,120 + 2,900

= $9,115‬

Merlin Anson owns Unix Computers, a company with five employees. As a small business owner, he has several options for payroll processing. What factors should he consider when deciding on which payroll processing option is best for Unix Computers

Answers

Answer: amount of money he wants to spend on the payroll processing. Also, he has to consider the independent contractors

Explanation:

From the question, we are informed that Merlin Anson owns Unix Computers, a company with five employees and that as a small business owner, he has several options for payroll processing.

The factors that he should consider when deciding on which payroll processing option is best for Unix Computers are amount he wants to spend on the payroll processing. Also, he has to consider the independent contractors. These two are essential to know which option is good for the company.

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