Why do pension funds have vesting periods

Assignment Help Finance Basics
Reference no: EM131304237

1. Why do pension funds have vesting periods? Do vesting periods have any advantages to employees relative to a system where new hires are eligible to participate in a pension plan right away?

2. Suppose that insurance companies in Ohio are reluctant to offer fire insurance to firms in lowincome neighborhoods because of the prevalence of arson fires in those neighborhoods. Suppose that the Ohio state legislature passes a law stating that insurance companies must offer fire insurance to every business in the state and may not take into account the prevalence of arson fires when setting insurance premiums. What will be the likely effect on the market for fire insurance in Ohio?

Reference no: EM131304237

Questions Cloud

How company adds value to its customers buying experience : Visit the company's site at www.amazon.com, and describe how the company adds value to its customers' buying experience.
Write a class named weaklycalendar : You to write a class named WeaklyCalendar. This class must be in a package named pa4. Note that the description of a programming assignment is not a linear narrative and often requires multiple readings before things start to click.
Advantages and disadvantages of each type of plan : From your point of view, what are the advantages and disadvantages of each type of plan? From your employer's point of view, what are the advantages and disadvantages?
Evaluate the nature of the business customers attracted : Evaluate the nature of the business customers attracted. Who is the target audience for this business marketing site?
Why do pension funds have vesting periods : Why do pension funds have vesting periods? Do vesting periods have any advantages to employees relative to a system where new hires are eligible to participate in a pension plan right away?
Examine key methodological issues and approaches to research : ASB 4415 Management Research Individual Assignment. To examine key methodological issues and approaches to research in management studies, and to critically evaluate the strengths and limitations of data gathered from interviews, case studies, focu..
How is a cds similar to insurance : Why might AIG's computer models have given an incorrect forecast of the likelihood of the firm having to make a payment on the CDSs they were selling?
What is the shadow banking system : What is a "run" on a financial firm? Why have runs on commercial banks become rare, while several shadow banking firms experienced runs during the financial crisis?
Analyze the advertisements you observe on the website : What target market can marketers access through this community?- How can marketers target this community to market their goods and services?

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of initial cash outflow

Computation of initial cash outflow and what is the minimum price at which you should offer to supply the jets

  Theory of the term structure of interest rates

A recent edition of The Wall Street Journal reported interest rates of 2.25%, 2.60%, 2.98% and 3.25% for three-year, four-year, five-year and six-year Treasury note yields, respectively.

  What are the maximum possible dollars the us importer

The spot rate on the September payment date turns out to be $1.70/BP. The importer can either exercise the call options or sell them back at their market value. Assume that he can sell them back at $0.0205 per BP if he chooses to. What is the actu..

  Credit card liabilities and fraud

When a credit card is lost or stolen, it can be used until its owner reports it as missing. This loss of one's credit card can result in fraud and therefore, being aware of the legalities that follow is important. This assignment addresses the leg..

  What is the payback period for this project

Christopher electronics bought new machinery for $5,045,000 million. This is expected to result in additional cash flows of $1,200,000 million over the next 7 years. What is the payback period for this project? Their acceptance period is five year..

  What are the duration and modified duration of a seven-year

What are the duration and modified duration of a seven-year, 3.5 percent coupon rate, annual coupon payment, $1000 par value government note priced today to yield 3 percent to maturity

  Independent federal regulatory agencies

Choose at least three independent federal regulatory agencies, other than the FTC, and describe their responsibilities and authority. When and why were they created?

  Write summary of the article that discusses union formation

Research a recent article that discusses union formation or union elections, and write a summary of the article. The article should be published within the past six months and should be at least two to three pages in length.

  Find containers stock account as at 31 december 2002

Briefly explain the following terms as used in accounting for returnable containers: charge-out price, Credit-back price

  Do you think agency problems are likely to be more or less

What are the implications of this trend for agency problems and corporate control?

  Explaining cash management firm-s-opportunity cost is given

As the bank is also doing lot of record keeping, firm’s administrative cost would reduce by $2,000 per month. What suggestion would you provide firm with respect to proposed cash management suppose the firm’s opportunity cost is 12%?

  The interest rate associated with an equal payment loan

Which present value interest factors would be used to find (a) The growth rate associated with a series of cash flows and (b) The interest rate associated with an equal-payment loan?

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