In determining insurance limits and deductibles, an important concept is that insurance should be used to pay big losses rather than small losses
The objective is to insure big losses that could cause financial ruin and to exclude small losses that can be budgeted out of current income. This concept is called the
A) law of large numbers.
B) efficient loss-cost concept.
C) large-loss principle.
D) retention-transfer tradeoff.
Answer: C
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A form of totalitarianism, sometimes referred to as "right-wing," allows for both economic and political freedoms.
Answer the following statement true (T) or false (F)
Which of the following accounts would appear on the sales budget and the pro forma income statement?
A. Selling and administrative expenses B. Both sales and accounts receivable are correct C. Accounts receivable D. Sales revenue
This question has two parts; be sure to answer both. First, list and describe the three parts of compensation. Second, consider this situation: Felix earns a $45,000 yearly salary as the store manager of a local McDonald's franchise. The owner of the franchise pays for medical and dental insurance for Felix and his family. In addition, Felix can earn a $1,000 bonus for each month the store exceeds $250,000 in revenue. Explain how Felix's compensation breaks down into the three different parts of compensation.
What will be an ideal response?
Explain the fairness of using personality tests for selection of new employees.
What will be an ideal response?