What is the difference between stock insurance companies and mutual insurance companies?
What will be an ideal response?
Answer: Stock insurance companies are private insurers providing insurance to policyholders and earning profits for shareholders. Mutual insurance companies are nonprofit private insurers owned by their insurance policyholders, to whom they pay dividends or for whom they reduce premiums.
Explanation: Examples of stock insurance companies are Aetna, Allstate, American Family Insurance, Farmers, Hartford, MetLife, Pacific Life, Prudential, State Farm, and Travelers. Examples of mutual insurance companies are Liberty Mutual, Massachusetts Mutual, Mutual of Omaha, Nationwide Mutual, and Northwestern Mutual.
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________ are financial contracts whose values depend on the values of some underlying asset price
A) Margin calls B) Derivative securities C) Tax codes D) Tax shields
Which of the following, if true, weakens the argument for the introduction of a Fizz energy drink?
A) The other players in the energy drink market have long-term contracts with raw material suppliers. B) The demand for carbonated drinks has experienced a steady decline over the past few years. C) Unsteady input costs have forced existing players to adopt a guarded approach to pricing. D) It will take longer for Fizz to recoup its R&D investment than it did to recoup the R&D costs for the fruit drinks. E) Studies indicate that a growing number of consumers perceive energy drink claims as false.