What are the two methods by which insurance companies hedge their risk of extreme losses?
What will be an ideal response?
Insurance companies can either hold large amounts of capital or purchase reinsurance, thus shifting the risk to another firm.
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The reliability of a client's internal documentation is most affected by which of the following?
a. The auditor's independence. b. Management's motivation to misstate accounts. c. The type of audit report that will be issued. d. Management's ability to understand generally accepted audit standards.
The key to increasing the standard of living is to increase ______.
a. profits b. productivity c. currency strength d. share price
Admac Technologies has a standard variable overhead rate of $4.50 per machine hour, and each unit produced has a standard time allowed of three hours. The company's static budget was based on 46,000 units. Actual results for the year follow.Actual units produced: 42,000Actual machine hours worked: 120,000Actual variable overhead incurred: $520,000Admac's variable-overhead spending variance is:
A. $27,000 unfavorable. B. $20,000 favorable. C. $20,000 unfavorable. D. $27,000 favorable. E. None of the answers is correct.
If a transportation problem has four origins and five destinations, the LP formulation of the problem will have nine constraints
Indicate whether the statement is true or false