From the insured's perspective, the use of deductibles in insurance contracts is an example of
A) risk transfer.
B) risk control.
C) risk avoidance.
D) risk retention.
Answer: D
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Selected data for Sorenta, Inc and New World Corp, two companies in the same industry, are presented below: Sorenta, Inc New World Corp Sales $50,000 $80,000 Cost of goods sold 30,000 50,000 Average inventory balance 5,000 5,000 Based on this data, which statement below is true?
a. New World Corp sells its inventory faster than Sorenta, Inc. b. Sorenta, Inc. has a lower gross profit ratio than New World Corp. c. Sorenta, Inc. has lower storage costs and a lower investment in inventory than New World Corp. d. New World Corp has a higher net income than Sorenta, Inc.
Use the following information to answer the question below. The following transactions involving Cactus Wren Corporation occurred during the year: Apr. 1 Purchased 2,000 shares of its own preferred stock for $20, the current market price. This is the first transaction involving its own stock engaged in by the company. May 3 Sold 400 of the shares purchased on April 1 for $25 per share. June 5
Retired 600 of the shares purchased on April 1. The original issue price was $10. The par value of the stock is $5. The entry to record the April 1 transaction is : A) Cash 40,000 Treasury Stock, Preferred 40,000 B) Retained Earnings 40,000 Cash 40,000 C) Paid-in Capital, Preferred 40,000 Treasury Stock, Preferred 40,000 D) Treasury Stock, Preferred 40,000 Cash 40,000
Standardized wages tied to jobs rather than individuals, reduces ______________________ flexibility.
Fill in the blank(s) with the appropriate word(s).
An entrepreneur with loss-orientation would talk about the business-failure with a close friend or relative.
Answer the following statement true (T) or false (F)