All of the following statements about life insurance company investments are true EXCEPT
A) Funds for these investments are derived primarily from premium income, investment earnings, and maturing investments that must be reinvested.
B) Income from these investments reduces the cost of insurance.
C) A primary objective in making these investments is safety of principal.
D) The majority of these investments are short-term investments.
Answer: D
Business
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_____ is an economic system wherein private individuals and corporations own production methods and attempt to make a profit in a free market with limited interference by government.
Fill in the blank(s) with the appropriate word(s).
Business
If a company has a net profit margin of 12% and a tax rate of 40%, the before-tax profit margin is closest to:
A. 7.2%. B. 12.4%. C. 20.0%.
Business