Stock company or a mutual company

Assignment Help Finance Basics
Reference no: EM13751679

You will be assigned a scenario. Preparing a 7-10 minute PowerPoint presentation containing the steps you would take, and the choices you would make in starting your company. Below is a template which outlines some of the major decisions. Remember, there is no "right or wrong" method to choose, but often there is a more appropriate method. You will not be graded based on which method you choose, but on how well you can defend that method with your reasoning and logic. Discuss these within you groups in detail, and make your decisions as a team.

Accounting: Do we want to be a stock company or a mutual company? What are the benefits/disadvantages of each? What types of reinsurance treaties do we need to pursue, and why?

Information Technology: Do we want to be web based, app based, or use "paper"? What are the advantages of each? Do we want to outsource our IT or handle internally?

Sales/Marketing: What is our distribution channel: independent agents, captive agents, or direct? Why? Would "affinity marketing" be viable for our company? How will our commission structure compare to other companies?

Products: What can we do to differentiate our product? Do we operate in a niche? If so, how do we tailor our product to fit the needs of that niche? Work with Underwriting to develop Guidelines.

Underwriting: Do we want "eyeballs" on every risk before approval or do we want some level of automated underwriting? Will we need inspections? What are your general gut feelings about the provided risk? Work with Products to develop Guidelines.

Claims: What is the structure of our department? Do claims reps handle specific types of claims or do all reps handle each claim in its entirety? How much will we need to rely on outside adjusters? What is the cost/benefit analysis of using outside adjusters?

Today, you will engage in circular dialogue within your group to discuss these items. I encourage you to meet outside of class at least twice over the next few weeks to ensure this assignment is completed with input from each team member. As always, if you have any questions, I am available as a resource as are your other industry contacts.

Reference no: EM13751679

Questions Cloud

Identify at least three psychological processes : Outline covering the initial preparation for the Presentation.Consumer Traits and Behavior Include a thesis, major topics, and subpoints.
What are the benefits of enterprise systems : What are the benefits of enterprise systems? What are the challenges of enterprise systems
Write an essay on the kinship systems in foraging : Write an essay on the Kinship systems in Foraging and Horticultural based societies provide support for people in all stages of their life.
Desalination technology for management water issue : Desalination Technology for Management Water Issue in California - Use different case that are using desalination please use Qatar and china desalination program
Stock company or a mutual company : Accounting: Do we want to be a stock company or a mutual company? What are the benefits/disadvantages of each? What types of reinsurance treaties do we need to pursue, and why?
Explain distributive justice and how it relates to employee : Explain distributive justice and how it relates to employee motivation. Explain the utilitarian, libertarian, and Rawlsian views of justice. How are they similar? How are they different
List and describe the quality dimensions of decision making : List and describe the quality dimensions of decision making
Discuss the implications of risk-return trade-off : Discuss the implications of risk-return trade-off with respect to your overall investment portfolio as you approach retirement age. Are there any assets that you would avoid investing in as you near retirement age?
Control process for determining the quality of the tools : One thing to consider as you begin putting together a set of tools and utilities for computer forensics, is that you will need a control process for determining the quality of the tools

Reviews

Write a Review

Finance Basics Questions & Answers

  Create an ios chart

Create an IOS chart with the following investment alternatives: Alternative A has an IRR of 8% and will add $10 million to the capital structure, while alternative B adds $12 million but returns 6.5%.

  What is cost of equity raised by selling new common stock

Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; P0 = $15.00; g = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock?

  What is the present value of these cash flows

Conoly Co. has identified an investment project with the following cash flows. If the discount rate is 10 %, what is the present value of these cash flows? What is the present value at 18%? At 24 %? Year Cash Flow 1 - $960 2 - $840 3 - $935 4 - $1..

  Determine the bond price

A company is planning to increase $43 million of external funding. Would there be financial leverage and what kind of financial leverage would be present if a corporation could issue bonds in the capital market,

  What is margin of safety

Company A sells 150 units next month. Unit sales are $80 variable cost $45 and fixed cost are $5000. What is margin of safety?

  Draw a timeline of the returement needs

Chad is saving for retirement. Expects to spend $43,500 per year for 15 years. Earns 6% per year with semi-annual compounding on his invested funds. Will draw down on his retirement foun at the beginning of retirement.

  Additional profits after tax will amount to 18000 per year

you are a small business owner and you have the opportunity to expand your facility which will increase your

  Acompany bonds are currenlty selling for 115775 per 1000

a company bonds are currenlty selling for 1157.75 per 1000 par-value bond. the bonds have a 10 coupon rate and will

  What is the nominal annual percentage cost

What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?

  Should the firm initiate the lockbox system

Assume that the firm could earn 10% on marketable securities and that there are 260 working days and hence 260 transfer from each lockbox location per year.

  What is the total return to ahmed from owning the stock

Ahmed purchased a stock for $45 one year ago. The stock is now worth $65. During the year, the stock paid a dividend of $2.50. What is the total return to Ahmed from owning the stock? A. 5% B. 44% C. 35% D. 50%

  Finding capital structure leverage

The M&M Company wishes to sell 100,000 units of its new product at $15 apiece. The variable cost is $12. The company has an operating expense of $200,000.

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