Disadvantages of automobile insurance plans include which of the following?
I. High premiums may cause many high-risk drivers to go uninsured.
II. Large underwriting profits have resulted in high-risk drivers subsidizing the cost of insurance for good drivers in the voluntary markets.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: A
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At the beginning of the year, a firm leased equipment on a capital lease, capitalizing $60,000 in its lease receivable account. The contract calls for December 31 payments of $15,000 . The lessor's annual reporting period ends December 31 and the contract reflects 10% interest. The lessee made the first payment as required. The direct method statement of cash flows for the lessor should reflect
which of the following in the first year of the lease contract (ignore noncash disclosures)? a. $15,000 operating cash flow b. $6,000 operating cash flow; $9,000 investing cash flow c. $6,000 operating cash flow; $9,000 addition reconciling adjustment d. $9,000 investing cash flow
Naoyuki is a surgical technologist at a hospital. His job involves helping out during surgeries. Among other things, he hands supplies to surgeons and surgeons’ assistants, holds retractors and other instruments, and performs various tasks requested by the surgeon. An individual bonus plan would not work for Naoyuki because of which disadvantage of individual incentives?
A. Many jobs have no direct output. B. Individual incentives may motivate undesirable employee behaviors. C. The record-keeping burden needed for individual incentives is high. D. Individual incentives may not fit organizational culture.
Orangewood Industries bought a new cash register for $7,500. Orangewood originally planned to use the cash register for 4 years and then sell it for $600. After 4 years, Orangewood had recorded $6,900 of depreciation. If the company continues to use the cash register, still planning to sell it eventually for $600, then Orangewood should record:
A. $1,725 of additional depreciation. B. the removal of the cash register from its books because it is fully depreciated. C. no additional depreciation. D. $600 of additional depreciation.
______ differentiation refers to the number of different types of jobs that exist in an organization’s structure.
Fill in the blank(s) with the appropriate word(s).