Which of the Following Statements About the Insurance Industry as a Source

question 14

Multiple Choice

Which of the following statements about the insurance industry as a source of investment funds is (are) true?
I.These funds result in a lower cost of capital than would exist in the absence of insurance.
II.These funds tend to promote economic growth and full employment.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

Recognize the importance and procedures of alternative dispute resolution methods.

Identify the specific elements critical in determining the appropriateness of a given legal forum for resolving disputes.

Understand the nature and purpose of exploratory research.

Recognize the sources and applications of primary and secondary data in marketing.

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Definitions:

Contribution Margin

The differential between sales and variable costs, indicative of a product's profitability before fixed costs are subtracted.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production expenses, in contrast to fixed costs.

Fixed Manufacturing Cost

Expenses that do not change with the level of production, such as rent for factory premises, salaries for permanent staff, and depreciation of equipment.

Manufacturing Overhead Cost

Expenses related to the production process that are not directly tied to a specific product, including utilities, depreciation, and salaries for production supervisors.