What is the effective or after-tax cost to your employer

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Reference no: EM131957032

1. Suppose your employer's marginal corporate tax rate is 25%. If the total cost of deductible employee benefits is $1,000,000. What is the effective or after-tax cost to your employer?

750,000

$250,000

$1,250,000

2. The risk that insurance companies have that those individuals who will likely have the most claims are the most likely to seek out buying insurance is called:

subrogation

adverse selection

underwriting

perils

Reference no: EM131957032

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