Introduction of the term underwriting
Give a brief introduction of the term underwriting?
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Underwriting is a procedure in that there are those financial service providers like bank, investments and insurers that uses these to find out the eligibility of a customer to obtain the products that is owned by them like insurance, equity capital and credit. In this procedure there are risks that are involved and generally financial provider participates in those kinds of risks and remains prepared to undertake them.
Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
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