The Law of Large Numbers States That as the Number

question 17

Multiple Choice

The law of large numbers states that as the number of exposure units increases:

• A) accuracy of predictions should improve
• B) the chance of loss declines
• C) Speculative risk increases
• D) the number of accidents decreases

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Definitions:

Identifiable Net Assets

Assets that can be separately identified and measured apart from the business entity, often relevant in the valuation of companies for acquisition or reporting purposes.

Non-Controlling Interest

The portion of equity in a subsidiary not owned directly or indirectly by the parent company.

Fair Value Enterprise Method

A valuation method where a business is valued based on the present value of its projected future earnings or cash flows, adjusted to their market value.

Consolidated Balance Sheet

A financial statement showing the combined assets, liabilities, and equity of a parent company and its subsidiaries as if they were a single entity.