The Level of Combined Ratio That Is Required for Each

question 36

Multiple Choice

The level of combined ratio that is required for each line of business to avoid losing money is called the:

• A)cash flow combined ratio level.
• B)goodwill combined ratio level.
• C)break-even combined ratio level.
• D)amortization combined ratio level.
• E)horizontal combined ratio level.

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Percentage Increase

The proportional growth of a quantity over a specific period, calculated as the difference between the final and initial values divided by the initial value, multiplied by 100.

Sales Data

Information and statistics related to the sales performance of a company's products or services.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.