Which of the Following Is Not a Characteristic Commonly Assessed

question 6

Multiple Choice

Which of the following is not a characteristic commonly assessed by insurance regulators to detect any problems in an insurance company?

• A) liquidity of the asset portfolio
• B) relative size of operating expenses
• C) return on investment
• D) All of the above are assessed by regulators.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them the owners of the corporation to the extent of the shares they hold.

Sole Proprietorship

A business in which one person (sole proprietor) is in control of the management and profits.

Management

The process of planning, organizing, leading, and controlling resources to achieve organizational goals.

Profits

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs involved in maintaining the operation.