All of the following are disadvantages of using insurance in a commercial risk management program EXCEPT
A) There is an opportunity cost because premiums must be paid in advance.
B) Considerable time and effort must be spent selecting and negotiating coverages.
C) It results in considerable fluctuations in earnings after losses occur.
D) Attitudes toward loss control may become lax when losses are insured.
Answer: C
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Assume the following long-term debt structure for Parton Stores: Construction Loan at 5% on Building Under Construction . . . . . . . ..$2,000,000 Other Borrowings at 6% Average Rate . . . . . . . . . . . . . . . . . . . . . . . . .7,200,000 Total Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,200,000 The account Building Under Construction has an
average balance during the year of $6,000,000 . Parton Stores bases the amount of interest capitalized on the new construction-related borrowing, $2,000,000, and enough of the other borrowing to bring the total to $6,000,000 . How much does Parton Stores capitalize interest on the new construction? a. $240,000 b. $300,000 c. $320,000 d. $340,000 e. $360,000
Use personal pronouns in business and technical documents to establish a ___________ tone
a. superior b. personal c. professional d. pleading
Darcy buys a life insurance policy on her own life, under which she pays the annual premiums. The insurance is issued for a specific period, but is renewable for similar periods. Darcy is covered only as long as she makes the payments. There is no cash value portion to the policy. Darcy probably owns
a. whole life insurance. b. key-person life insurance. c. term life insurance. d. an annuity.
Jim agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Jim to so act. This describes a relationship between A) a business and its competitors
B) a government and its governed. C) a parent and a child. D) a principal and an agent.