Delta Insurance Company has a surplus-share treaty with Eversafe Reinsurance. Delta has a retention limit of $200,000, and nine lines of insurance are ceded to Eversafe

How much will Eversafe pay if a $1,600,000 building insured by Delta suffers an $800,000 loss?
A) $600,000
B) $700,000
C) $720,000
D) $800,000


Answer: B

Business

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(CMA adapted, Jun 97 #15) Refer to the Devlin Company example. Devlin Company's inventory turnover for the year ended May 31, Year 7, was

a. 3.67 times b. 3.88 times c. 5.33 times d. 5.65 times e. 5.95 times

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By creating a spreadsheet that will allow the buyer to enter current fuel costs and see recalculations of fuel costs that would occur from using Kaygo tires, the sales representative is creating:

A) an airtight argument against other tire vendors B) a way to involve the buyer in the presentation C) a program that should be created by the IT department D) an experience so elementary that it will patronize the buyer E) an ROI statement the buyer can take as a guarantee of savings

Business

The cost of janitorial services for a factory building would be classified as direct labor

Indicate whether the statement is true or false

Business

When replacing an old asset with a new one, the original purchase price of the old asset represents a(n) ________ cost

A) relevant B) differential C) opportunity D) sunk

Business