The Difference Between a Venture's Ability to Generate Cash to Pay

question 73

Multiple Choice

The difference between a venture's ability to generate cash to pay interest and the amount of interest it has to pay is determined by which of the following ratios?

• A)fixed-charges coverage
• B)debt-to-equity ratio
• C)equity multiplier
• D)interest coverage

Understand the impact of life expectancy on life insurance planning.

Evaluate the cost of life insurance and factors influencing premium costs.

Discriminate between participating and nonparticipating policies and their premiums.

Apply different methods to estimate life insurance needs based on individual or family circumstances.

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Definitions:

Consumer Surplus

The contrast between the overall amount consumers are willing to pay for a good or service and the total they actually pay.

Supply

The total amount of a good or service that producers are willing and able to sell at a given price over a certain period.

Consumer Surplus

The rift between what consumers are economically prepared to spend on a service or product and their actual spending.

Consumer Surplus

The divergence between the total consumers can and are willing to pay for a product or service and what they truly pay.