A mechanism for reducing financial risk and spreading financial loss due to unexpected events is known as _. The document stipulating the terms of this agreement is known as a(n) _. (19-1)

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 19, Problem 1CR

A mechanism for reducing financial risk and spreading financial loss due to unexpected events is known as _____. The document stipulating the terms of this agreement is known as a(n) _____. (19-1)

Expert Solution & Answer

To determine

To fill: The blanks in the statement, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as ______________.The document stipulating the term of this agreement is known as a(n) ____________.”.

Answer to Problem 1CR

Solution:

The correct statement is, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance. The document stipulating the term of this agreement is known as a policy”.

Explanation of Solution

Insurance is the protection in the future economic risk. It is used to hedge against the uncertain loss.

Thus, the mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance.

The company which ensure to pay in the uncertain loss are known as insurer and the individual or business who buy the protection are known as insured. And, the contract between the insurer and the insured is called policy.

Thus, the document stipulating the terms is known as policy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

4. A liability insurance policy has a deductible of $100,000, a policy limit of$20,000,000 and co-insurance such that the policyholder pays 20% of theremaining claim. How much does the insurer pay if the loss is: (i) $50,000(ii) $362,000(iii) $20,065,000(iv) $31,400,000

In which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) purchased stock in Xerox Corporation purchased office supplies issued common stock sold plant assets for cash sold equipment for cash

Which of the following statements is CORRECT? One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. Sole proprietorships are subject to more regulations than corporations. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones. Corporations of all types are subject to the corporate income tax.

Answer 2

Textbook Question

Chapter 19, Problem 1CR

A mechanism for reducing financial risk and spreading financial loss due to unexpected events is known as _____. The document stipulating the terms of this agreement is known as a(n) _____. (19-1)

Expert Solution & Answer

To determine

To fill: The blanks in the statement, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as ______________.The document stipulating the term of this agreement is known as a(n) ____________.”.

Answer to Problem 1CR

Solution:

The correct statement is, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance. The document stipulating the term of this agreement is known as a policy”.

Explanation of Solution

Insurance is the protection in the future economic risk. It is used to hedge against the uncertain loss.

Thus, the mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance.

The company which ensure to pay in the uncertain loss are known as insurer and the individual or business who buy the protection are known as insured. And, the contract between the insurer and the insured is called policy.

Thus, the document stipulating the terms is known as policy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 19, Problem 1CR

A mechanism for reducing financial risk and spreading financial loss due to unexpected events is known as _____. The document stipulating the terms of this agreement is known as a(n) _____. (19-1)

Expert Solution & Answer

To determine

To fill: The blanks in the statement, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as ______________.The document stipulating the term of this agreement is known as a(n) ____________.”.

Answer to Problem 1CR

Solution:

The correct statement is, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance. The document stipulating the term of this agreement is known as a policy”.

Explanation of Solution

Insurance is the protection in the future economic risk. It is used to hedge against the uncertain loss.

Thus, the mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance.

The company which ensure to pay in the uncertain loss are known as insurer and the individual or business who buy the protection are known as insured. And, the contract between the insurer and the insured is called policy.

Thus, the document stipulating the terms is known as policy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 19, Problem 1CR

A mechanism for reducing financial risk and spreading financial loss due to unexpected events is known as _____. The document stipulating the terms of this agreement is known as a(n) _____. (19-1)

Expert Solution & Answer

To determine

To fill: The blanks in the statement, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as ______________.The document stipulating the term of this agreement is known as a(n) ____________.”.

Answer to Problem 1CR

Solution:

The correct statement is, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance. The document stipulating the term of this agreement is known as a policy”.

Explanation of Solution

Insurance is the protection in the future economic risk. It is used to hedge against the uncertain loss.

Thus, the mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance.

The company which ensure to pay in the uncertain loss are known as insurer and the individual or business who buy the protection are known as insured. And, the contract between the insurer and the insured is called policy.

Thus, the document stipulating the terms is known as policy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

To fill: The blanks in the statement, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as ______________.The document stipulating the term of this agreement is known as a(n) ____________.”.

Answer to Problem 1CR

Solution:

The correct statement is, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance. The document stipulating the term of this agreement is known as a policy”.

Explanation of Solution

Insurance is the protection in the future economic risk. It is used to hedge against the uncertain loss.

Thus, the mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance.

The company which ensure to pay in the uncertain loss are known as insurer and the individual or business who buy the protection are known as insured. And, the contract between the insurer and the insured is called policy.

Thus, the document stipulating the terms is known as policy.

Answer 8

Expert Solution & Answer

To determine

To fill: The blanks in the statement, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as ______________.The document stipulating the term of this agreement is known as a(n) ____________.”.

Answer to Problem 1CR

Solution:

The correct statement is, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance. The document stipulating the term of this agreement is known as a policy”.

Explanation of Solution

Insurance is the protection in the future economic risk. It is used to hedge against the uncertain loss.

Thus, the mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance.

The company which ensure to pay in the uncertain loss are known as insurer and the individual or business who buy the protection are known as insured. And, the contract between the insurer and the insured is called policy.

Thus, the document stipulating the terms is known as policy.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

To fill: The blanks in the statement, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as ______________.The document stipulating the term of this agreement is known as a(n) ____________.”.

Answer 12

Answer to Problem 1CR

Solution:

The correct statement is, “A mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance. The document stipulating the term of this agreement is known as a policy”.

Answer 13

Explanation of Solution

Insurance is the protection in the future economic risk. It is used to hedge against the uncertain loss.

Thus, the mechanism for reducing financial risk and spreading financial loss due to unexpected event is known as insurance.

The company which ensure to pay in the uncertain loss are known as insurer and the individual or business who buy the protection are known as insured. And, the contract between the insurer and the insured is called policy.

Thus, the document stipulating the terms is known as policy.