List some of the reasons why insurance companies engage in the reinsurance transaction
What will be an ideal response?
Reasons for insurance companies engaging in the reinsurance transaction include: 1 ) keeps exposures similar is size, 2 ) enhances the operation of the law of large numbers, 3 ) purchase services from the reinsurance companies, 4 ) makes the insurance company appear competitive for large exposures, 5 ) enhances the ability of entry into and exit out of the insurance business.
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Which of the following procedures most likely would not be an internal control activity designed to reduce the risk of errors in the billing process?
A. Comparing control totals for shipping documents with corresponding totals for sales invoices. B. Matching shipping documents with approved sales orders before invoice preparation. C. Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger. D. Using computer programmed controls on the pricing and mathematical accuracy of sales invoices.
What selection model allows an individual to do poorly on one test but make up for that poor grade by doing much better on other tests?
A. High-interest model B. Compensatory model C. Multiple-hurdle model D. Observational-justice model E. Secondary-interest model
When a new plant can be built that is a duplicate of others already functioning
A. costs will be the same as in existing locations. B. labor trainers experienced in the operation of the machinery can be sent to the new locations without undergoing any training. C. manufacturing specifications from the technical department still require alterations. D. vendors will be requested to furnish equipment that they have supplied previously.
To increase your verbal fluency you should plan what you will talk about when you meet someone new. ____________________
Answer the following statement true (T) or false (F)