Explain the nature and purpose of insurance in relationship to the small business
What will be an ideal response?
Answer: Insurance is a risk transfer strategy. Not every potential loss can be insured. Insurability requires that it be possible to estimate the amount of actual loss being insured against and identify the specific risk and that there be enough policyholders to spread out the risk.
Business
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Opportunity costs include only out-of-pocket expenses
Indicate whether the statement is true or false
Business
Provide a brief example to illustrate that externally reported financial accounting information must be based in part on estimates, judgments, and assumptions
What will be an ideal response?
Business