Kathy owns a large retail electrical store

Assignment Help Finance Basics
Reference no: EM131046816

Kathy owns a large retail electrical store that sells light fixtures, lamps, and electrical equipment. The firm is not insured for employee theft. A risk management consultant recommended adding an ISO commercial crime coverage form to the firm's package policy, including coverage for employee theft. The crime form was issued on a discovery basis on July 1, 2011 without a retroactive date endorsement. The coverage amount for employee theft is $25,000. A routine audit in December 2011 by an accounting firm revealed that one of the bookkeepers had embezzled $20,000 over a three-month period in 2009.

a. What dollar amount, if any, will the insurer pay for the loss?

b. Would your answer to part (a) be the same or different if the crime coverage form were issued on a loss-sustained basis? Explain.

Reference no: EM131046816

Compute the profit consequences of the decision

Describe a decision that you or your company made that involved opportunity costs that should have been considered. Why did your company make the decision? What should they

Use royalty rate contracts or fixed-fee contracts

Contracts Does your firm use royalty rate contracts or fixed-fee contracts? Describe the incentive effects of the contracts. Should you change the contract from one to the o

Opportunity costs and benefits of the decision

Describe an investment decision your company has made. Compute the opportunity costs and benefits of the decision. Did your company make the right decision? If not, what wou

Suppose that in our national geographic example

Suppose that in our National Geographic example, half of the original cost of the rotogravure printing press is fixed and half is sunk. How low can the offered price go befo

Five horseracing tracks in kentucky

There are five horseracing tracks in Kentucky. The Kentucky legislature allows only one track to be open at a time. How does this restriction affect the price the track can

Earn enough profit to cover your fixed cost

Using information from Question 6-1, your boss tells you that price cannot drop below $9 because you cannot earn enough profit to cover your fixed cost. What should you tell

A company currently sells

A company currently sells 60,000 units a month at $10 per unit. The marginal cost per unit is $6. The company is considering raising the price by 10% to $11. If the price el

Describe the source of the scope economies

Describe two activities inside your organization, or one inside and one outside your organization, that exhibit economies (or diseconomies) of scope. Describe the source of


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd