Insurance companies collect premiums in advance. Since the premiums collected are not needed to pay losses and expenses immediately, the funds can be loaned to business firms. Because of this fact, insurance benefits society by
A) enhancing credit.
B) providing a source of investment funds.
C) indemnifying losses.
D) providing an incentive for loss prevention.
Answer: B
You might also like to view...
The International Accounting Standards Board (IASB) was created in order to develop worldwide accounting standards that must be used for all financial statements prepared regardless of country
a. True b. False Indicate whether the statement is true or false
If cash decreases by $10,000 during the year, liabilities decrease by $5,000, and shareholders' equity increases by $5,000, what is the total change in noncash assets for the year?
a. a decrease of $5,000 b. an increase of $10,000 c. a decrease of $10,000 d. an increase of $5,000 e. an increase of $15,000
Explain the do's and don'ts of greeting people.
What will be an ideal response?
Business process reengineering is the analysis and redesign of _________ within and between enterprises.
Fill in the blank(s) with the appropriate word(s).