Insurance regulations require legal reserves and surplus because:
A) assets have to equal liabilities plus owners' equity
B) reserves are long-term obligations and must be met with long-term assets
C) they provide a cushion against bad underwriting and investment results
D) insurers must pre-fund all agent's commissions and underwriting expenses
C
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The admission of a partner does not change the composition of partners' equity if the new partner purchases the old partner's interest by paying the old partner directly
Indicate whether the statement is true or false
Schriever Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed element per monthVariable Element per Well ServicedRevenue $4,500Employee salaries and wages$57,200 $1,100Servicing materials $600Other expenses$31,000 ?The planning budget for May was based on 36 wells serviced, but a total of 31 wells were actually serviced in May.?The activity variance for "Employee salaries and wages" for May would have been closest to:
A. $5,500 F B. $7,500 U C. $5,500 U D. $7,500 F
Due to the inability to control sales, the government has, to date, prohibited the marketing of franchise operations over the Internet
a. True b. False Indicate whether the statement is true or false
For the best success, strategic alliance partners should sign contracts with stated expectations and an "easy out" clause.
Answer the following statement true (T) or false (F)