In the insurance business, what is the purpose of underwriting?
The purpose of underwriting is to determine whether the application fits the criteria that make the insurance a reasonable risk.
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Perfection of a security interest under the UCC by a creditor provides added protection against other parties in the event the debtor does not pay his debts. Which of the following is not affected by perfection of a security interest?
A. The trustee in a bankruptcy proceeding. B. A buyer in the ordinary course of business. C. A subsequent personal injury judgment creditor. D. Other prospective creditors of the debtor.
Which of the following types of transactions may not typically be accounted for using the cash method?
A. sales of inventory B. services C. purchases of machinery D. payments of debt E. sales of securities by an investor