Cameron has $17,000 in monetary assets and $4,000 in current liabilities. The current ratio is 17000/4000.
A liability is something that an individual or company owes, usually a monetary amount. Liabilities are settled over time by the transfer of economic benefits, including money, goods, or services.
A liability is a legally binding obligation to another entity. Liabilities are incurred to finance the ongoing activities of a company. Examples of accounts payable are business accounts payable, accrued expenses, accrued wages, and accrued taxes.
Assets are owned by the company and liabilities are borne by the company. Both are listed on the company's balance sheet, which is a financial statement that shows the financial condition of the company. Assets less liabilities equals the owner's equity or net worth.
Learn more about liabilities here:https://brainly.com/question/24534918
#SPJ4
during the great depression, businesspeople in the united states were very pessimistic about the future of economic growth and reluctant to increase investment spending even when interest rates fell. this pessimism limited the potential for monetary policy to help alleviate the depression because
Businesses were not investing due to their lack of confidence that investments would result in profits. Monetary policy is a macroeconomic policy used by central banks to manage the supply of money, interest rates, and financial stability of a country.
During an economic crisis, monetary policy can be used by the government to stimulate economic growth by increasing investment spending. However, this policy can only be effective if businesses are willing to invest in such an economy. In the case of the Great Depression, businesses' unwillingness to invest limited the effectiveness of monetary policy in helping the economy. Despite the government's efforts to lower interest rates to encourage businesses to invest, their efforts were unsuccessful due to businesses' pessimism about the future of economic growth. Low investment spending resulted in an economy that was unable to grow as businesses were not creating jobs or increasing consumer spending, which led to stagnation. The government had to implement other policies to help alleviate the depression.for more such question on economic
https://brainly.com/question/17996535
#SPJ11
A firm that is considering changing the colors used on its packaging wants to determine the effect of different color schemes on sales. To do so, the firm places three different packages in stores in three different markets. What type of research is this
Based on the information given the type of research is: Experimental research.
What is experimental research?An experimental research can be defined as the research method that is carried out by researcher when they want to conduct a research about an invention.
Researcher tend to make use of variables when conducting an experimental research as this will help to give them the accurate result they are expecting after conducting the experiment.
Inconclusion the type of research is: Experimental research.
Learn more about experimental research here:https://brainly.com/question/19757430
Answer: Experimental
Explanation: An experiment involves determining cause-and-effect relationships between variables.
suppose that, because of inflation, people in brazil economize on currency and go to the bank each day to withdraw their daily currency needs. this is an example of
Brazil economize on currency and go to the bank each day to withdraw their daily currency needs This is an example of shoe leather costs.
What are the economic costs of inflation?
In this frugality, inflation can put only two real expenses the less effective system of transactions that affect from holding lower plutocrat balances and the essential to change posted charges more constantly.
What are the main effects of inflation?Inflation raises charges, lowering your purchasing power. Inflation correspondingly lowers the valuations of pensions, savings, and Treasury notes. Capital similar as real estate and collectibles generally keep up with affectation. Variable interest rates on loans increase during inflation.
What are shoe leather costs?
Shoe- leather costs relate to the time and trouble it takes you to minimize the concussion of inflation on your finances. The term comes from the physical shoe leather that people would do in out while forming repeated passages to the bank
Learn more about shoe leather cost :
brainly.com/question/15052125
#SPJ4
rainbow ice sells snow cones for $3 per customer. variable costs are $2 per snow cone. fixed costs are $2,900 per month. what is the company's contribution margin per snow cone?
the contribution margin per snow cone is:
$3 - $2 = $1
What is selling price?Selling price is the price at which a company sells its products or services to customers. It is determined based on various factors such as production cost, competition, market demand, and profit margin. The selling price should cover the cost of production and expenses incurred while ensuring that the company makes a profit. The price is usually set higher than the cost of production, taking into account the value of the product or service, as well as the brand and reputation of the company. The selling price may also be adjusted based on factors such as promotional offers, seasonal demand, and market conditions. A well-considered selling price strategy can help a company increase its revenue, market share, and profitability while providing value to customers.
The selling price per snow cone is $3, and the variable cost per snow cone is $2. Therefore, the contribution margin per snow cone is:
$3 - $2 = $1
This means that for each snow cone sold, Rainbow Ice contributes $1 to cover the fixed costs and generate profit
To know more about Selling price, click on the link :
https://brainly.com/question/28017453
#SPJ1
The right to receive a proportionate share of any assets remaining after the corporation goes out of business, sells its assets, and pays off its liabilities is the right of.
Liquidation is the right to receive a proportionate share of any assets remaining after the corporation goes out of business, sells its assets, and pays off it liabilities
When a corporation stops operating and is deregistered, its assets are sold as part of the liquidation process. The assets are sold to satisfy the claims of the shareholders and creditors, among other parties. When a business becomes insolvent and is unable to continue operating, it goes through the liquidation process.
Liquidation may be either required or optional. The phrase "liquidation" is also used to indicate that a business is prepared to sell some of its assets. For instance, a chain of retail stores might want to close part of its locations.
Learn more about liquidation here:
https://brainly.com/question/28239913
#SPJ4
radford is a small company that manufactures automobile bearings. managers at the company must make decisions on the kind and the cost of equipment to buy.
Radford is a small company that manufactures automobile bearings. Managers at the company must make decisions on the kind and the cost of equipment to buy is an example of corporate finance.
Corporate finance is the domain of finance that deals with funding sources, capital structures, managerial actions to raise the firm's value to shareholders, and tools and analyses to allocate financial resources. The maximization or growth of shareholder value is the main objective of corporate finance.
There are two primary subdisciplines in corporate finance. Setting criteria for which value-adding projects should receive investment funding and deciding whether to raise capital that investment with equity or debt capital are both aspects of capital budgeting. Working capital management, which focuses on managing cash, inventory, and short-term borrowing and lending, is the management of the company's financial resources that deal with the short-term operating balance of current assets and current liabilities.
To learn more about corporate finance, click below:
https://brainly.com/question/17487525
#SPJ4
in October 2001 president George w bush gave directions to establish the office of homeland security and the homeland security council. what is this an example of? A. treaty B. executive order C. agency regulation D.Statute
Answer:
agency regulations i think
Planing is the primary function of management.discuss
Explanation:
it is a primary function of management because it help in making the business and it makes it easier for the employees and everyone involved in the business in the workforce to see what is going to happen in the business and it's important for making decisions and such as trading and different types of that can a decision so it can also make it easier for the employees and the whole business to run smoothly because if you have a plan for everything then you can easily basically just you know work according to your needs and you can just flourish as a business
5.
An efficient economy is one that
Ouses its resources to make the most goods and services.
Ohas very few people who do not work for a living.
Omake it possible to increase an economy's output.
Omakes the best use of all its goods and services.
I
Given the current status of the U.S. economy—a slow recovery from a severe, pandemic-induced economic downturn, relatively high unemployment, moderate inflation, and an enormous national debt level—what aggregate demand policy would you recommend as the single most important course of action needed to address the current status of the U.S. economy?
Why do you believe that your recommended course of action will be successful in improving the current performance level of the U.S. economy?
To address the current state of the U.S. economy, implementing expansionary fiscal policy through increased government spending and/or reduced taxes would be recommended. This can stimulate spending, boost aggregate demand, and improve economic performance.
Based on economic principles, during a slow recovery with high unemployment, a recommended aggregate demand policy would be an expansionary fiscal policy. This involves increasing government spending and/or reducing taxes to stimulate consumer and business spending, thus boosting aggregate demand.
Expanding government spending can create job opportunities, leading to increased employment levels. Reducing taxes puts more money in consumers' pockets, encouraging them to spend more, which can further stimulate economic activity. These measures aim to increase overall spending, leading to increased production, job creation, and economic growth.
The effectiveness of expansionary fiscal policy depends on various factors such as the magnitude of the stimulus, timing, and efficiency of spending. It also requires careful management to ensure fiscal sustainability and avoid excessive inflation or further accumulation of the national debt. Implementing such policies alongside measures to address structural issues and promote long-term economic growth can contribute to improving the overall performance of the U.S. economy.
Learn more about Fiscal policy: https://brainly.com/question/6583917
#SPJ11
J. D. Power and Associates surveys new automobile owners to learn about the quality of recently purchased vehicles. The following questions were asked in a J. D. Power Initial Quality Survey. Comment on whether each question provides categorical or quantitative data. (a) Did you purchase or lease the vehicle? categorical quantitative (b) What price did you pay? categorical quantitative (c) What is the overall attractiveness of your vehicle's exterior? (Unacceptable, Average, Outstanding, or Truly Exceptional) categorical quantitative (d) What is your average miles per gallon? categorical quantitative (e) What is your overall rating of your new vehicle? (1- to 10-point scale with 1 Unacceptable and 10 Truly Exceptional) categorical quantitative
Quantitative data can be measured in numbers, for example 20 miles for every gallon. While categorical data alludes to non-numerical responses, for example better caliber, better looks, and is generally obtained by picking one response from a gathering of available answers.
a. CATEGORICAL DATA
b. QUANTITATIVE DATA
c. CATEGORICAL DATA
d. QUANTITATIVE DATA
e. QUANTITATIVE DATA
Quantitative variables are any variables where the data address amounts (for example level, weight, or age).
Categorical variables are any variables where the data address gatherings. This incorporates rankings (for example finishing places in a race), classifications (for example brands of cereal), and binary results (for example coin flips).
Categorical data alludes to a data type that can be stored and distinguished based on the names or labels given to them. Numerical data alludes to the data that is as numbers, and not in any language or descriptive form. Also referred to as qualitative data as it qualifies data before classifying it.
to know more about quantitative data click here:
https://brainly.com/question/96076
#SPJ4
How does loadshedding affect consumers in South Africa?
Answer:
The load shedding break-out caught many unsuspecting South African households unaware as little to nothing had been announced about it. Businesses, especially petrol stations without any form of back-up energy were forced to close shop for close to five hours while others quickly cranked their generators to life just to keep the lights and the pumps on. Individual households were not spared either as they were also left in the darkness. The South African Insurance Association is acutely aware of the risks that comes with such intermittent power surges to household appliances.
Explanation:
1. What types of deaths are considered "deaths of despair"?
Answer:
Starvation, drowning, torture, death from thirst or starvation, rotting in solitary confinement until death.
Explanation:
Sometimes people will do anyting to survive, invluding eating themselves.
What is NOT an advantage of being an entrepreneur?
Answer: Disadvantages include a lack of guarantee of success and the heightened responsibility of owning a business
Answer:
The advantages of entrepreneurship include the ability to shape one's own business, control of one's own working habits, and significant stock in the venture. Disadvantages include a lack of guarantee of success and the heightened responsibility of owning a business.
Explanation:
You are borrowing $17,800 to buy a car. The terms of the loan call for monthly payments for 5 years at 8. 6 percent interest. What is the amount of each payment?.
The amount of each payment of car borrowing = $366.05 monthly payment .
What's a monthly loan payment?Your monthly payment is what you pay to the lender each month to refund your loan. The quantum you compensate every month depends on the terms of your mortgage loan. This includes the star, which is the factual balance on the loan, and the interest on the loan.
Given :Purchase value of car = $17,800
Loan Period = 5 years
Annual Interest rate = 8.6%
Calculating Monthly Payment of the Loan:(Using Formula);
PV = C × {1-[1/(1+r)t]}/r
$17,800 = Monthly Payment × {1-[1 ÷(1+0.086/12)⁵ˣ¹²]} ÷ 0.086
$17,800 = Monthly Payment × {1-[1÷ (1.00716667)⁶⁰]} ÷ 0.00716667
$17,800 = Monthly Payment × {1-0.651507293} ÷ 0.00716667
$17,800 = Monthly Payment × [0.348492707 ÷ 0.00716667]
$17,800 = Monthly Payment × 48.6268667
Monthly Payment × $48.6268667 = $17,800
Monthly Payment = [$17,800 / $48.6268667]
Monthly Payment = $366.05
Interest payment :
Interest is payment from a borrower or deposit- taking fiscal institution to a lender or depositor of an quantum above prepayment of the top sum, at a particular rate. It's distinct from a figure which the borrower may pay the lender or some third party. Interest is defined as the quantum of plutocrat paid for the use of someone differently plutocrat. An illustration of interest is the$ 20 that was earned this time on your savings regard. An illustration of interest is the$ 2000 you paid in interest this time on your home loan.
Learn more about monthly payment :
brainly.com/question/25599836
#SPJ4
Question content area the materials used by hibiscus company's division a are currently purchased from an outside supplier at $52 per unit. Division b is able to supply division a with 19,900 units at a variable cost of $46 per unit. The two divisions have recently negotiated a transfer price of $47 per unit for the 19,900 units. Enter an increase as a positive number and a decrease as a negative number. A. By how much will each division's income increase as a result of this transfer?
Division A's income will decrease by $99,500 and Division B's income will increase by $19,900 as a result of this transfer.
To calculate the increase or decrease in each division's income as a result of the transfer, we need to compare the costs before and after the transfer.
Division A:
Before the transfer, Division A purchased the materials from an outside supplier at $52 per unit.
After the transfer, Division A purchases the materials from Division B at $47 per unit.
Therefore, Division A's cost per unit decreases by $52 - $47 = $5 per unit.
Division B:
Before the transfer, Division B supplied the materials to an outside customer at a variable cost of $46 per unit.
After the transfer, Division B supplies the materials to Division A at $47 per unit.
Therefore, Division B's revenue per unit increases by $47 - $46 = $1 per unit.
To calculate the overall increase or decrease in each division's income, we need to multiply the change in cost/revenue per unit by the number of units transferred (19,900 units).
For Division A:
Income Increase = Decrease in Cost per Unit * Number of Units Transferred
Income Increase = -$5 * 19,900 = -$99,500 (decrease)
For Division B:
Income Increase = Increase in Revenue per Unit * Number of Units Transferred
Income Increase = $1 * 19,900 = $19,900 (increase)
Therefore, Division A's income will decrease by $99,500 and Division B's income will increase by $19,900 as a result of this transfer.
To learn more about Income click here
https://brainly.com/question/2194020
#SPJ11
Which multimedia and interactive elements do you think would best support your viewpoint on the topic you chose for your blog? Write two to four sentences explaining what multimedia and interactivity you will use and why.
Answer:
I will use images and details from credible websites, which will boost my own credibility and support my claim. I will also use charts and graphs from trusted web resources, such as government and university sites, to make my supporting evidence clear
Explanation:
I took the test
Brainiest???
The Use of videos, audios, and images in the blog will not only make it attractive but also make it credible.
Best Way to Write BlogTo write a credible and attractive blog we need to use multimedia such as videos, images, link of credible websites. We can also use other elements which can autocorrect grammer mistakes, can easily provide best charts and graphs.
The use of these elements can give a better outlook to our blog, and also create a sense of trust and credible information.
Learn More about Blog here:
https://brainly.com/question/898474
Blue Sky Laws require registration of all of the following EXCEPT: A exempt issues B non-exempt issues C broker-dealers D sales representatives
According to the state laws, all the above except issues that are exempt must be registered. Hence, option A is the correct answer.
What are Blue Sky Laws?Blue Sky State Laws refers to laws that are enacted to combat fraud, and which require that issuers of securities must be registered.
Blue Sky Laws also required issuers of securities to disclose details of their offerings.
Hence the correction option is A.
Learn more about State Laws at:
https://brainly.com/question/946945
A company produces 10 items, charges $45 per item. When it produces 20 items, it charges $40 per item. Cost to produce 10 items is $450, cost to produce 20 items is $650. What is the price, cost, revenue, profit functions. What is the break-even points, max profit and items to produce to get max profit.
Answer:
a. The price, cost, revenue, profit function = Revenue - Cost = (price * quantity - cost)
b. Break-even point = Total Revenue = Total Cost
= $450 = $450
break-even point in units = 10 items
c. Maximum profit = $150
Items to produce to get max profit = 20 items
Explanation:
a) Data and Calculations:
Sales Revenue for 10 items = $450 ($45 * 10)
Cost of sales for 10 items = $450
Sales Revenue for 20 items = $800 ($40 * 20)
Cost of sales for 20 items = $650
The price, cost, revenue, profit function = Revenue - Cost = (price * quantity - cost)
For 10 items, function yields = {($45 * 10) - $450} = 0
For 20 items, function yields = {($40 * 20) - $650} = $150
You have a $1,475 annual budget for spending on social media. The budget increases by 20% for December. What is your
budget for the month of December?
Answer:
To calculate the budget for the month of December, we need to first find 20% of the annual budget and then add it to the original budget.
20% of the annual budget = 0.2 x $1,475 = $295
So the budget increase for December is $295.
To find the budget for December, we add the budget increase to the original budget:
December budget = $1,475 + $295 = $1,770
Therefore, the budget for the month of December is $1,770.
Explanation:
WILL BE MARKED BRAILIEST!!
3.A company sees that sales of its speakers have decreased over the past
120 days. Its most likely option is to first
design a market research plan
visit some stores selling the product
stop production of the product
lower prices and see what happens
Answer:
They company goes out of business?
Explanation:
Pharoah Company ended its fiscal year on July 31, 2020. The company's adjusted trial balance as of the end of its fiscal year is as follows. Pharoah Company Adjusted Trial Balance July 31, 2020 Account Titles No. Debit Credit 101 112 $10,100 8,900 15,700 157 158 201 $7,300 4,100 2,100 47,100 208 Cash Accounts Receivable Equipment Accumulated Depreciation-Equip. Accounts Payable Unearned Rent Revenue Owner's Capital Owner's Drawings Service Revenue Rent Revenue Depreciation Expense Salaries and Wages Expense Utilities Expense 301 306 16,000 400 429 64,100 6,200 711 726 732 8,600 56,300 15,300 $130,900 $130,900 Post to Owner's Capital and Income Summary accounts. (Post entries in the order of journal entries presented in the previous part. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e... (45).) Owner's Capital No. 301 Balance Date Explanation Debit Credit July 31 July 31 July 31 Income Summary No. 350 Date Explanation Debit Credit Balance July 31 July 31 July 31 SHOW LEST OF ACCOUNTS Prepare a post-closing trial balance at July 31, PHAROAH COMPANY Post-Closing Trial Balance Debit Credit Totals
Closing entries transfer temporary account balances to Income Summary and Owner's Capital accounts. A post-closing trial balance confirms all accounts have been adjusted, and Owner's Capital balance is correct.
To post to the Owner's Capital account, we need to close the temporary accounts of Service Revenue, Rent Revenue, Depreciation Expense, Salaries and Wages Expense, and Utilities Expense. We will use the Income Summary account to do this.
First, we will transfer the balances of the temporary accounts to the Income Summary account by debiting or crediting them as necessary. Then, we will transfer the balance of the Income Summary account to the Owner's Capital account. The resulting journal entries are as follows:
Service Revenue $64,100
Rent Revenue 8,600
Income Summary $72,700
Depreciation Expense 15,300
Salaries and Wages Expense 56,300
Utilities Expense 8,600
Income Summary $80,200
Income Summary $80,200
Owner's Capital $80,200
Next, we can prepare a post-closing trial balance to ensure that all accounts have been properly adjusted and that the Owner's Capital account reflects the correct balance after closing the temporary accounts. The post-closing trial balance includes only permanent accounts and should show equal debits and credits. The resulting post-closing trial balance for Pharoah Company at July 31, 2020, is as follows:
Pharoah Company
Post-Closing Trial Balance
July 31, 2020
Debit Credit
Cash $10,100
Accounts Receivable 8,900
Equipment 16,000
Accumulated Depreciation-Equip. 4,100
Accounts Payable 2,100
Unearned Rent Revenue 400
Owner's Capital 80,200
Totals $39,100 $39,100
In summary, the process of closing the temporary accounts and transferring the balances to the Owner's Capital account results in a post-closing trial balance that only includes permanent accounts.
This helps ensure that all accounts are properly adjusted and provides an accurate representation of the company's financial position at the end of the fiscal year.
To know more about trial balance refer here:
https://brainly.com/question/28541140#
#SPJ11
__________ is the practice of not only customizing a product but also personalizing the marketing and overall shopping and buying interaction for each customer.
Customerization is the practice of not only customizing a product but also personalizing the marketing and overall shopping and buying interaction for each customer.
Customerization is a strategy which organizations use wherein they customize the products or services through personal interaction between a company and its customers. Thus, in this strategy both the company and the consumer contribute to the resulting product value together.
Marketers use customerization to decrease churn and improve customer satisfaction. Also, customerization helps to improve customer loyalty and gives a company a competitive edge where a company expands.
Hence, customerization is the customization of products or services.
To learn more about customerization here:
https://brainly.com/question/28147140
#SPJ4
what are the difference between engineer and architect?plz help!!!!!
Answer:
an architect is focused on designing and construction the form space, and ambiance of buildings and other physical environments, whereas, engineers ensure that the design will work by applying scientific principles.
if you want a bond that you can exchange into stock of a given company, you should buy a ________.
Purchase a convertible bond if you want a bond that can be converted into stock of a specific company.
A convertible bond is a form of bond that offers the option for the bondholder to convert the bond into a predetermined number of shares of the issuing company's common stock. This allows the bondholder to benefit from any potential future increase in the company's stock price. Convertible bonds typically offer lower interest rates than non-convertible bonds as they offer the potential for equity appreciation. However, the conversion option may be subject to certain conditions, such as a specific period of time during which the bond may be converted or a minimum stock price requirement. In summary, if you are looking for the potential to benefit from a company's future stock price increase while also receiving fixed interest payments, a convertible bond may be a suitable investment option.
To know more about Stock visit :
https://brainly.com/question/31476517
#SPJ11
If a strategic plan is failing to meet its objectives, but the company's execution is deemed sufficient, management should first Multiple choice question. reconsider the assumptions that were used to formulate the strategic plan. pressure employees to improve their implementation efforts. start from stage one of the strategy process. set less ambitious objectives.
Answer:
The answer is "reconsider the assumptions that were used to formulate the strategic plan".
Explanation:
This strategic plan is a document used to improve objectives to achieve these objectives and all other essential aspects generated during the planning process to the company. That's why Whether the business strategy fails to meet its goals, but the performance of the business is judged enough, management must first s right the premises used in construct the comprehensive strategy.
Air travel is down by almost 50 percent as most people prefer to take road trips in
cars as opposed to boarding an airplane. As a result, the price for jet fuel drops
significantly
A. Changes in consumer expectations
B. Changes in demand for complementary goods
C. Changes to the number of consumers
D. Changes in consumer preferences and tastes
Answer:
C
Hope this helps
Answer:
C
Explanation:
The price of jet fuel will drop as they would want major companies to buy more since they will be losing money.
From a business PoV, it is better to sell at a lower price with little to no profit or losing a little bit of money rather than losing tons of money.
Which industry is the second-largest employer of teens
and young people?
What percentage of employed teens are employed by
the government?
I got it
is retail trade
and 7%
Answer:
I. Retail industry
ii. 7%
Explanation:
Retail industry is the second largest employers of teen and young people next to health sector which is the largest employer.
Retailing involves buying goods either from the producers or wholesaler and selling them to the final consumers. Some services are also offered in these retailing such as call center representative, those who work in innovation lab. etc
In the United States, about 7% of teens and young people are in the employment of government , while retail industry is the largest employer of teen and young people because it provides flexibility and also do not involve much academic qualifications.
Example of these retail jobs are those who work in call center, sales representatives and those who works in stores.
Answer:
Retail Trade
7%
Explanation:
Edge 2020
Do companies in either the service sector or the merchandising sector make choices about absorption costing versus variable costing?.
No, because they do not have set manufacturing costs, service and retailing businesses do not decide between absorption and variable costing.
Explain about the merchandising sector?Generally speaking, merchandising refers to any organization involved in product sales. There are two categories of merchandising businesses, namely retail and wholesale, according to this definition. While wholesalers purchase goods from producers and resell them to retailers, retailers offer their items straight to customers.
When a potential customer enters your store, merchandise refers to everything you do to advertise and sell your products. When we discuss merchandise, we are usually referring to goods that may be purchased, usually in a retail setting.
A merchandiser makes sure that a retail store's shelves are filled with goods and presents them tastefully for customers. Additionally, they keep tabs on inventory levels, alert management to any problems or shortages, and remove discarded products from egregious breaches of store etiquette.
To learn more about merchandising sector refer to:
https://brainly.com/question/29346581
#SPJ4
an elimination period is the number of days that must pass before disability policies pay proceeds.
An elimination period, also known as a waiting period or deductible period, is the specific number of days that must pass before disability insurance policies begin to pay out benefits.
When a policyholder experiences a disability, they must wait for this elimination period to end before they start receiving their insurance benefits. This period serves as a buffer to minimize the insurer's risk of paying out for short-term disabilities or temporary issues.
The length of an elimination period can vary, typically ranging from 30 to 180 days, depending on the policy and the insurer. A longer elimination period can lead to lower premium costs for the policyholder, as it reduces the insurer's liability for claims. It is essential for policyholders to choose an elimination period that suits their needs and financial situation, as they will need to cover their living expenses during this time without the support of the insurance benefits.
In summary, an elimination period is a crucial component of disability insurance policies that determines when the policyholder can start receiving benefits after experiencing a disability. This period helps manage the insurer's risk and can impact the cost of premiums for the policyholder. Choosing the right elimination period is an important consideration when selecting a disability insurance policy.
To know more about insurance, refer here:
https://brainly.com/question/30753047#
#SPJ11