Each Line of Business Has Its Own Break-Even Point Because

question 68

Multiple Choice

Each line of business has its own break-even point because:

• A)the firm uses different strategies for each line to mitigate risks.
• B)each line in an industry has a different loss payment time horizon but similar length of time for the investment of the premiums.
• C)each line in an industry has varying length of time for the investment of premiums but similar loss payment time horizon.
• D)all lines in an industry have similar loss payment time horizon and length of time for the investment of the premiums.
• E)each line has a different loss payment time horizon and length of time for the investment of the premiums.

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Definitions:

Conscious Mind

The aspect of the mind that involves awareness of the immediate surroundings, thoughts, and sensations.

Libido

A term often used in psychoanalytic theory to denote the energy associated with the sexual drive and desire.

Id

In psychoanalytic theory, the part of the mind in which innate instinctual impulses and primary processes are manifest.

Superego

The component of the human psyche in Freudian psychoanalytic theory that mediates between the primal desires of the id and the moral standards of the ego, often associated with conscience.