Which of the Following Is Probably Not an Example of Spreading

question 16

Multiple Choice

Which of the following is probably not an example of spreading risk?

• A)a syndicate that owns a fishing boat
• B)a farmer and landowner sharing crop output
• C)a joint venture company exploring for offshore oil
• D)General Motors buying fire insurance from a small insurance company

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Definitions:

Regular Hourly Wage

This is the standard amount of money paid to an employee for each hour of work, excluding overtime rates or bonuses.

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been withheld.

Social Security Tax

A mandatory contribution paid by employees and employers to the government, intended to fund the Social Security program that provides benefits for retirees, disabled individuals, and survivors.

FUTA Tax

Federal Unemployment Tax Act tax, which is a payroll tax paid by employers to fund the government's unemployment insurance program.