Under the Small Business Health Options Program (SHOP)provision of the Health

question 21

Multiple Choice

Under the Small Business Health Options Program (SHOP) provision of the health care plan,a small firm's employees would be pooled with the employees of other small firms.When an insurance plan covers a large number of people,

• A) moral hazard is reduced.
• B) adverse selection problems are reduced.
• C) asymmetric information issues are eliminated.
• D) negative externalities become more pronounced.

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Definitions:

Physical Inventory Worksheet

A document used during a physical inventory count to record and tally all inventory items in storage physically.

Open Purchase Orders Report

A document listing all purchase orders that have been issued but not yet fulfilled or closed.

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods or services received but not yet paid for.

Vendor Reports

Reports generated in accounting software that provide details on transactions and outstanding balances with suppliers.