Indicate the correct statements: The solvency margin of a company is represented by the capital from shareholders and free reserves of the company. Policyholders usually prefer higher solvency margins. Higher solvency margins indicate a higher utilisation of resources. Shareholders usually prefer higher solvency ratios.
Indicate the correct statements: The solvency margin of a company is represented by the capital from shareholders and free reserves of the company. Policyholders usually prefer higher solvency margins. Higher solvency margins indicate a higher utilisation of resources. Shareholders usually prefer higher solvency ratios.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 41MCQ
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Question
Indicate the correct statements:
-
The solvency margin of a company is represented by the capital from shareholders and free reserves of the company.
-
Policyholders usually prefer higher solvency margins.
-
Higher solvency margins indicate a higher utilisation of resources.
-
Shareholders usually prefer higher solvency ratios.
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