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They take money just incase something goes wrong, if nothing goes wrong, they keep money. If something goes wrong $$$ > Income, insurance prices go up.
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How do you assess a company's profitability?
Profitability means ability of the entity to earn more than the costs they incurred on their business operation. Normally, the price of the good available for sale (unit per rate) is higher than its cost in order to earn profit. Thus, unit price - unit cost = profit
Is general motors for-profit or not-for-profit?
General motors is for profit company.
Why is profit a require for basiness?
All businesses need to earn profit to establish stability in the market. Profit is one tool to measure the dominance of the business in the market. It is the 'survival component" of all businesses in order to weather stiff market competition and prevent the company from untimely saturation or bankruptcy.
Net profit is a liability?
It is not because what makes you think what you have earned is not belonging to the company? with no profit, company will gone bankrupt easily if net profit is liability. if it is liability, who is the company owing the money to?
What are the difference between equity share capital and preference shares capital and examples?
Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of company and preference share holders get there share even if company has earn no profit. Equity share capital is share capital on which share holders get share from profit in the last after paying every other obligation on company. Detail answer available in related link.
Why should a company stay in profit?
because some company earn many profit and save some profit to use in the day of bad profit
The concept of repricing life insurance policy?
Re-pricing focuses on the rate revision, there is no change in existing benefit structure of the product. The rate revision is necessitated due to several reasons. Some of the reasons are as follows ü When the insurance company feels that the product is not sold as expected then the insurance company will revise the rate to sell the product. ü When the insurance company feels that the product does not give profit as expected then the insurance company will revise the rate to earn profit. ü When the insurance company feels that the product has more demand then the insurance company will revise the rate to meet the demand. ü When the insurance regulatory authority asks the insurance company to revise the premium then the insurance company will reduce the rate.
What is the difference between Investment and Financing?
Financing is done in own company or other investors by our company while investing is to put money in others company to earn interest profit or dividend profit etc.
Is Blue Cross Blue Shield a commercial insurance?
They were originally a not-for-profit but now are a private, for profit company.
Is a mutual insurance company Not-for-profit?
A mutual insurance company is a corporation owned by its policyholders who may receive dividends if the insurer's operations are profitable.
Who was the inventor of aeropostale and why was it made?
"Aeropostale" is a company, and presumably, it was "made" in order to earn a profit.
What is a life insurance policy dividend?
It's a payment made to the policy owner by the mutual insurance company when there is a profit. The policyholders are the owners of a mutual life insurance company and they share in the profits by receiving dividend payments from the insurance company.
When was the Nationwide insurance company declared bankrupt?
There is no easily obtainable record of the Nationwide insurance company declaring bankruptcy. Currently, they are an active company, with enough profit to donate to charitable causes.
What is the difference between insurance and gambling?
The goal of insurance is to put you in the same financial position you were in before the loss. The goal of gambling, is to come out ahead In insurance you either suffer the loss or maintain the status quo, one can never earn profit in insurance But in gambling there is a possibility of both loss as well as profit.
How much money does a title insurance representative earn?
I am a Title Insurance Agent in Florida. I earn $46,000 per year. I have 2 years experience and work for a small company.
What insurance company offers an upgrade in your car in case of accident?
None. Your auto insurance policy is a contract of indemnity. Not a contract of profit.
What is the significance of a joint-stock company?
To earn more money by investing in a company then they give you a share of money from their profit and it can sometimes be more or less.
