How do a reciprocal exchange and a mutual insurance company differ?
What will be an ideal response?
A reciprocal exchange is similar to a mutual. Reciprocal exchanges are not incorporated and are run by an attorney-in-fact. Because of this, the ability to retain surplus is more difficult in a reciprocal exchange. A board of directors declares the distribution in the mutual. However, no such structure exists in the reciprocal to help separate the company from the insureds and the powers to distribute dividends.
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Refer to the following bank reconciliation:
Bank Book Balance, June 30, 2017 $11,240 Balance, June 30, 2017 $10,200 Add: Add: Deposit in transit 3,110 Note collected by bank 2,100 Interest revenue 55 Less: Less: Outstanding checks #506 1,200 NSF check 85 Outstanding checks #510 900 Bank service charge 20 ________ ________ Adjusted balance, Adjusted balance, June 30, 2017 $12,250 June 30, 2017 $12,250 Journalize the adjusting entry for the second reconciling item: Interest revenue.
The corporate opportunity doctrine ________
A) prohibits corporate officers and directors from taking personal advantage of opportunities that, in all fairness, should be given to the corporation B) requires corporate officers to allow other firms the opportunity to compete in the same market C) prohibits corporate shareholders from taking personal advantage of opportunities that, in all fairness, should be given to the corporation D) requires corporate officers to continually look for opportunities for the corporation to expand into new markets