The primary purpose of coinsurance in property insurance is to

A) reduce moral hazard.
B) achieve equity in rating.
C) minimize problems in settling claims.
D) eliminate small losses.


Answer: B

Business

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The chairman of the Federal Reserve Board, under whose leadership the inflation rate reduced from about 10 percent to about 4 percent in the 1980s was

A. Arthur Burns. B. G. William Miller. C. Paul Volcker. D. Alan Greenspan.

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Which of the following is a tactic best employed during the growth stage of a product's life

cycle? A) developing additional features as desired by customers B) introducing similar products into existing segments C) reducing costs and offer the product only to niche segments D) restricting packaging to one or two variants

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The amount of annual cash dividends distributed to common shareholders relative to the common stock's market value is the:

A. Price-earnings ratio. B. Dividend yield. C. Earnings per share. D. Current yield. E. Dividend payout ratio.

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Which of the following statements is true of forming C corporations?

A. They include preferred stockholders who vote in stockholders' meetings. B. They require the adoption of corporate bylaws. C. They are cheaper than forming a partnership. D. They can be formed through a verbal agreement.

Business