Explain the financial definition and the legal definition of "insurance."
What will be an ideal response?
Financially, insurance is an arrangement which redistributes the cost of a few losses among many who contribute to a pool. Legally, insurance is a contractual arrangement where one party agrees to indemnify another if a loss occurs.
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Credit card companies may give out free umbrellas on campus when a student completes an application for a card.
Answer the following statement true (T) or false (F)
Psychographics is the science of using psychology and demographics to better understand consumers
Indicate whether the statement is true or false
Practical standards are the most effective standards for controlling and motivating workers
Indicate whether the statement is true or false
Accounts receivable represents:
A. Cash owed by customers to the company B. Cash the company owes to suppliers C. Cash that has been collected from customers D. None of the above