Scenario 4.2shirley is a salesperson at a pharmaceutical firm. she has been tasked with selling a new drug. one doctor looks like a great prospect. he is highly interested in trying out the drug and has requested some samples. however, he has asked shirley to list any side effects of the product. shirley knows that there is a very small chance that it could cause extreme muscle spasms in certain individuals. the chance for this is low, and even those that suffer from side effects will most likely not experience such severe reactions. yet shirley knows from her past experience with this doctor that he is incredibly picky and is not likely to agree to try out the medicine if he knows about this extreme side effect—no matter how unlikely it is to occur. shirley therefore decides not to tell him. she describes other potential side effects, but she leaves this out. refer to scenario 4.2. this is an example of what type of ethical issue? a. promotionb. distributionc. productd. pricee. consumer

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?