Finance

A student who has skipped many classes and not studied the course mate

A student who has skipped many classes and not studied the course material was surprised to learn there was a test when he showed-up for class. The student’s mental uncertainty about whether or not he will pass the test is called A) objective risk. B) objective probability. C) subjective probability. D) subjective risk.     […]

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Date: September 19th, 2020

All of the following are characteristics of the liability risk that mo

All of the following are characteristics of the liability risk that most people face EXCEPT A) a lien may be placed on your income and assets to satisfy a legal judgment. B) substantial legal expenses may be incurred defending the claim. C) there is no upper limit on the amount of the loss. D) owning […]

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Date: September 19th, 2020

MLX Drug Company would like to market a new hypertension drug. While t

MLX Drug Company would like to market a new hypertension drug. While the Food and Drug Administration (FDA) was testing the drug, it discovered that the drug produced a harmful side effect. When MLX learned of the FDA’s test result, MLX abandoned its plan to produce and distribute the drug. MLX’s reaction illustrates A) risk […]

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Date: September 19th, 2020

ABC Insurance Company sells auto insurance in one state. Recently, the

ABC Insurance Company sells auto insurance in one state. Recently, the state legislature passed a law that limits the use of an individual’s credit history by insurers when selecting applicants to insure. This change in law will increase the possibility of unprofitable results for ABC. This type of hazard is an example of A) physical […]

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Date: September 19th, 2020