Preparing for a changing insurance market
Article Abstract:
The insurance market goes through cycles that have shortened to a normal duration of from one to three years due to the greater availability of information and government regulation. Signs indicate that the insurance market will tighten up in mid-1990 due to a deterioration in loss and combined ratios and new tax legislation. Financial managers need to anticipate when the insurance market will tighten up and plan accordingly, taking advantage of opportunities available in a lax market to cut the best deal. To get the best rates and cement a financial relationship with an insurance company, financial managers need to present a corporate image of stability and continuity. Financial managers must gather documentation in order to show insurance companies that their company is a good risk, including historical policy information and information on losses by policy type and year.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1990
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Tax rates in small and large firms
Article Abstract:
This study examines the relationship between firm size and tax rates. Contrary to other recent studies, these findings demonstrate that corporations in the smallest size group pay the highest effective corporate tax rates. It is suggested that the higher tax rates of small firms can be explained in terms of selling, general and administrative expenses. Selling, general and administrative expenses as a ratio to sales are more than 50% higher for small corporations than for the largest firms in the non-durable manufacturing industry group. (Reprinted by permission of the publisher.)
Publication Name: American Journal of Small Business
Subject: Business, general
ISSN: 0363-9428
Year: 1987
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