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What type of loss financing does each of the following represent? Rosy Handbags is a corporation that is specialized in making unique leather handbags. Rosy
What type of loss financing does each of the following represent?
- Rosy Handbags is a corporation that is specialized in making unique leather handbags. Rosy Handbags is worried that the price of leather may go up six months from now. Rosy Handbags gets into a forward contract, where it can buy leather at a relatively cheap price six months from now. ___________________
- Mr. Grey does not believe in buying health insurance. Instead, Mr. Grey always keeps $200,000 in his savings account at Beta Bank. He will only use this money in case of a medical emergency. ___________________
- ABC is a well-known construction company. ABC subcontracts all the electrical engineering work on its newest project to Red Company. In the contract that it draws with Red Company, ABC makes sure that Red Company will be responsible for any physical injuries to ABCs workers, while the teams of both companies are working on site. ___________________
- Mrs. White pays an insurance premium of $5000 per year to Bright Insurance Company, for insuring her jewelry against theft. ___________________
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