All of the Following Are Purposes of Deductibles EXCEPT

question 27

Multiple Choice

All of the following are purposes of deductibles EXCEPT

• A)to eliminate small claims.
• B)to reduce premiums.
• C)to reduce attitudinal hazard.
• D)to exclude uninsurable perils.

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Definitions:

Internal Revenue Code

The comprehensive federal law that governs all aspects of income tax in the United States.

Capital Investment

Funds invested in a firm or enterprise for the purpose of furthering its business objectives.

Manufacturing Sunk Cost

Costs that have already been incurred in the manufacturing process and cannot be recovered or altered by future decisions.

Capital Investment Analysis

The process of evaluating the potential returns and risks associated with investing in long-term assets to aid in decision making.