How do a reciprocal exchange and a mutual insurance company differ?
What will be an ideal response?
A reciprocal exchange is similar to a mutual. Reciprocal exchanges are not incorporated and are run by an attorney-in-fact. Because of this, the ability to retain surplus is more difficult in a reciprocal exchange. A board of directors declares the distribution in the mutual. However, no such structure exists in the reciprocal to help separate the company from the insureds and the powers to distribute dividends.
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Each entry in a special journal is posted individually to the general ledger
Indicate whether the statement is true or false
AMA stands for ________
A) the Advertising and Marketing Association B) the Advertising and Marketing Agency C) the Association of Market Advertisers D) the American Media Association E) the American Marketing Association
Divine Foods produces a gourmet condiment which sells for $16 per unit. Variable costs are $6 per unit, and fixed costs are $5,000 per month. If Divine expects to sell 1,500 units, compute the margin of safety in units.
A) 500 units B) 1,000 units C) 1,500 units D) 8,000 units
As a promotion mix element, public relations refers to
A. advertising focused on promoting the company's image with its customers. B. nonpersonal promotional communication about a firm's goods and services. C. communication focused on promoting positive relations between a firm and its stakeholders. D. a set of nonpersonal communication tools designed to stimulate more frequent purchases of a product. E. the two-way flow of personal communication between the firm and its customers.