Which of the Following Is an Advantage of Converting from a Mutual

question 48

Multiple Choice

Which of the following is an advantage of converting from a mutual insurance company to a stockholder-controlled company?

• A)Publicly held companies have access to equity markets for additional capital for future business expansion.
• B)Mutual organizations are subject to higher regulatory standards than public companies.
• C)Ability to offer more insurance products than those allowed under mutual ownership.
• D)Publicly held insurance companies can convert to federal charters but mutual organizations cannot.
• E)Mutual organizations can only underwrite policies in the province or territory in which they are chartered while publicly held organizations can operate across Canada.

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Definitions:

Darwinian Puzzle

A term referring to phenomena or traits observed in nature that appear counterintuitive or challenging to explain through the lens of Darwin's theory of natural selection.

Monogamy

A mating system where an individual has only one mate during a breeding season or for a lifetime, promoting exclusive pair bonding and parental care.

Male Animals

Refers to the sex in many species that produces smaller gametes and typically has roles in mating and fertilization processes.

Polyandry

A mating system where a female has multiple male partners at the same time or sequentially within a single breeding season.