Chyou Lang Meaning of economies of scope Economies of scope is a term that refers to the fall in the cost of production when two or more companies produce a range of products together rather than separately. It also implies that producing one good brings about a reduction in the cost of producing another …
The merger has to be voluntary, that is, the two companies have to agree in order to arrive at a fusion into one. When two companies merge, they become a single legal entity. The companies that agree to merge tend to have roughly equal sizes, customers, and scale of operations. It is …
A recession is an economic downturn where the economy experiences negative growth over two consecutive quarters. There are many effects of a recession in an economy; the meaning, causes, and some examples of economic recessions would be discussed. Recession Meaning A recession in economics refers to a downward trend in an economy’s …
Insurable interest meaning The meaning of insurable interest in general insurance explains that the subject matter of insurance must have the ability to provide some financial gains to the insured, that is, it must possess financial value. If there is a loss of the subject matter due to theft, fire, damage, etc., …
Indemnity in insurance meaning Indemnity refers to the security or protection against financial liability which usually occurs in the form of a legal agreement that takes place between parties whereby one party agrees to pay the other party in an event of loss or damage suffered. The definition of indemnity in insurance …
During a recession, if the government uses an expansionary fiscal policy to increase GDP, the growth of the economy will be accelerated. Also, the aggregate demand curve will shift to the right. This is because, during this period, the economy operates below the level of full employment and the economic growth is …
Before providing an insurance policy, it is critical for the insurers to have a clear understanding of the nature and scope of the risk level they are about. This is a situation that requires underwriting as it applies to all forms of business. This describes the process as an act of determining …
During periods of economic expansion, the economy is growing in real terms excluding inflation as the evidence unfolds. Indicators increase such as employment, production, sales, and personal incomes. The increase in production brings about the need for more employees. Because of this, firms hire more people thereby amounting to the availability of …