Which of the Following Is NOT a Direct Social Benefit

question 36

Multiple Choice

Which of the following is NOT a direct social benefit of the insurance mechanism?

• A)increased business and social stability
• B)better allocation of society's resources
• C)better choice of optimum size of business operations
• D)lower federal and state income taxes

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Definitions:

Initial Investment

The amount of money used to start a project, purchase an asset, or initiate operations.

Cash Inflows

Money or funds entering a business from various sources like sales, investments, or financing.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization, such as purchasing equipment or acquiring another business.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.