1) The definition of insurance is being protected against any possible financial loss. Insurance is a firm that assumes responsibility for any losses from an insured risk.
2) The definition of property and liability insurance is a legal responsibility from cost of some other person’s losses or injuries.
3) The purpose of life insurance is to protect anyone that may depend on you from any financial losses due to our death. Another purpose may be to pay off home debt or other debts at the time of death, also to leave as part of estate as well as to save money for retirement or income or education for children. One type of life insurance is stock life insurance. Stock life insurance companies are owned by shareholders.. Around 76% are this kind of insurance. They sell non participating policies. The other type of life insurance is mutual life insurance. Mutual life insurance companies are the other 24% of the types of life insurance. They are owned by policy owners. Part of the premium is refunded to policy holders every year which is called policy dividend. There is also term life insurance which is a protection for a specified period of time and if you stop paying the premiums, the coverage stops. There is also whole life insurance where you pay a premium for however long you live. Another type is universal life which gives you more direct control.
4) The purpose of health insurance is to limit the financial burdens that people suffer from illness or any injuries. It is a part of a person’s overall risk management plan to safeguard that person’s family’s economic security.
5) A financial investment is an asset that you can put or invest money into. The purpose of investing is to hope that it grows into more money and thus receiving more than what you initially paid for. Financial investments include savings accounts or CD’s , US savings bonds which are the safest investments because it s a predictable income but does not have a great overall payoff. Higher investments with a higher potential of return include corporate bonds, preferred or common stocks, municipal bonds and real estate rental property. Bonds receive periodic interest rates. Also, bondholders can keep the bond until maturity or sell it to another investor before it matures. The goal of real estate investment is to buy property at a certain price and sell at a higher price.
6) The definition of stocks is one type of security that shows ownership in a corporation or company and claim part of the company’s assets and earnings. The purpose of stocks is to raise money for start up costs and help pay for expansion. A stockholder can sell a share of stock to another investor. Most corporations can distribute about 30-70% of earnings to stockholders which is a good purpose to invest in stock. In return the stockholders have voting rights in the company they invested in.
7) A mutual fund is an investment fund that pools money from many investors to purchase securities. It is managed by a professional fund manager. You can buy shares in a fund. It also provides diversification that can reduce risk. It matches your needs with the funds’ objective.
8) A bond is a loan to a corporation, federal government, or a municipality. The purpose of bonds is to lend the money at an interest rate. Bondholders receive periodic interest payments the
Table of Contents I. Introduction 2 Company Strategy and Goals 2 Capital Allocation and Investment Appraisal Methodology 2 II. Evaluation of the Investment Appraisal Techniques for BHP Billiton 4 Evaluation of Net present Value (NPV) Method 4 Evaluation of Internal Rate of Return (IRR) Method 6 Recommendations to BHP Billiton Regarding Investment Appraisal Metrics 7 III. References 10 Introduction BHP Billiton is one of the world’s leading natural resources companies, operating in more than…
Choose the best answer by typing the letter in bolded script (e.g., “Correct answer:B”). For computational questions: You must show your work where possible to receive credit. 1. Companies can issue different classes of common stock. Which of the following statements concerning stock classes is CORRECT? a. All common stocks fall into one of three classes: A, B, and C. b. All common stocks, regardless of class, must have the same voting rights. c. All firms have several classes of common stock…
(323) 617 1544 Permanent Address : No 1847 Crenshaw Blvd La Ca 90019 Following Masters In Business Administration under South Los Angeles University. Following Charted Financial Analysis (CFA.usa). UG degree of “Bachelor Of Business Management” (Finance Special 2nd class upper.)-(2006-2009) Diploma in computerized accounting(ACCPAC,MYOB,TALLY,QUICK BOOK)-2010 AAT-(Srl),Associate of Accounting Technicians Of Srilanka(stage1 &2 )-2006 Certificate of Banking Fundermentals.-2011 Present:…
competent in the happenings of government. During the final decade of Henry VIII’s rule there was an exponential decrease in royal power as a result of the increasing presence of faction as Henry’s health withered; more precisely during his final year when faction became the most prominent feature of government in appropriating royal power. The factional dispute between the Reformists and the Conservatives posed problems for Henry during his final decade in power as tensions increased. The fall of Cromwell…
FNCE20001 Business Finance Semester 2, 2012 FNCE20001 Business Finance Semester 2, 2012 Sample Final Exam 1 Note: This is an edited and revised version of a previous final exam. The reading time for this sample exam is 15 minutes and the writing time is 120 minutes. On this semester’s final exam you will be required to write your answers in the exam booklet and you will be provided with adequate space to do so. Note also that the format of this semester’s final exam will differ from…
4pm and Wednesday 2 – 4pm Course Topics and Goals For nearly 30 years with the advent of the PC, spreadsheet models have been the dominant vehicle for finance professionals in the business world to practice their trade. This course will utilize Excel, a spreadsheet program offered by Microsoft, and challenge the student to improve their finance and modeling skills by personally constructing 25+ spreadsheet models. Students will further improve their familiarity with financial data analysis through…
Corporate Finance (FIN 350) North Central College Winter Term (2014) Instructor Doh-Khul Kim, Ph.D. (Chair & Associate Professor of Economics and Finance) Office and Phone 125 S. Loomis House (Room 103) (630) 637-5243 dkim@noctrl.edu (email) Office Hours Mon/Wed. 2:00 – 3:00 pm Tue/Thu. 4:00 – 5:00 pm Fri. No Office Hours (Appointment Only) Textbooks Fundamentals of Financial Management by Brigham and Houston (Concise…
STILLMAN COLLEGE BUS 433-M Business Finance Spring 2014 Instructor: Emmanuel Chijioke, Ph.D, JD Meeting Days: MWF Room: Snedecor Auditorium Academic Rank: Prof. of Bus., Finance, and Law. Class time: 1 P.M. MWF Office Phone# 205 366-8936 Office Hours: 10:30 – 12 Noon on MW, 9 – 12 Noon TTH and by appointment e-mail: echijioke@stillman.edu Prerequisites: ACC 231, ACC232, BUS 233 or BUS 234 with grade of C or better. Required Textbook: Foundations of Financial Management…
capital budgeting method used historically by AES? What’s good and bad about it? “When AES undertook primarily domestic contract generation projects where the risk of changes to input and output prices was minimal, a project finance framework was employed.” Usually, project finance framework is used when the project has predictable cash flows, which can easily represent operating targets through explicit contract. When cash flows are certainty, the company can have higher level of leverage and it is…
Budgeting Process Overview To provide effective budgeting and revenue forecasting policies and management systems that will allow the organization to provide fiscal leadership, fiscal objectives and a management reporting tool to track variances throughout the year IT Systems Utilized WebCenter COMPASS Budget Preparation Work with Director of Administrative Services in IT to prepare The Vault application for the upcoming budget year. Create New Budget in Great Plains 1. Cards | Financial…