All of the Following Are Potential Advantages of Retention EXCEPT

question 58

Multiple Choice

All of the following are potential advantages of retention EXCEPT

• A)lower expenses.
• B)increased cash flow.
• C)encouragement of loss prevention.
• D)protection from catastrophic losses.

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Definitions:

Effective Tax Rate

The true percentage of earnings that a person or business pays to the government, determined by dividing their total tax contribution by their taxable income.

Consolidated Statements

Consolidated Statements are financial reports that aggregate the financial position and operating results of a parent company and its subsidiaries, presenting them as a single entity.

Unamortized Acquisition Differential

The portion of the purchase price of a company that is not yet allocated to the acquired assets or liabilities over time through amortization.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net tangible assets, representing future economic benefits.