Subsidization in insurance pools occurs if a 40-year-old male is charged the same life insurance premium as a 20-year-old male
Indicate whether the statement is true or false
TRUE
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According to the text, every successful company uses procedures to put its plans into effect, evaluate the plans' effectiveness, and make desirable corrections.
Answer the following statement true (T) or false (F)
Companies with ergonomics programs list all the following as common elements of success EXCEPT
A. providing notice and training for employees. B. planning and evaluating. C. filing injury reports. D. excluding employees from risk assessment.
Reductions in the average cost of a unit production as the total volume produced increases is
A. trial-and-error. B. Hawthorne effect. C. economies of scale. D. systematic management. E. human relations.
Which of the following statements is CORRECT?
A. Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%. The firm finances using only debt and common equity, and total assets equal total invested capital. Under these conditions, the ROE will increase. B. Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%. The firm finances using only debt and common equity, and total assets equal total invested capital. Without additional information, we cannot tell what will happen to the ROE. C. The DuPont equation provides information about how operations affect the ROE, but the equation does not include the effects of debt on the ROE. D. Other things held constant, an increase in the total debt to total capital ratio will result in an increase in the profit margin. E. Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10%and its debt increases from 40% of total assets to 60%. The firm finances using only debt and common equity, and total assets equal total invested capital. Under these conditions, the ROE will decrease.