Question

What aspect of reserving practices would governments be concerned about as collectors of taxes?

a.

Maximizing reserves

b.

Ensuring solvency

c.

Avoiding instability

d.

Delaying taxable profit

Posted under IC 14 Regulations of Insurance Business

Answer: (d).Delaying taxable profit Explanation:Governments, as collectors of taxes, are concerned about avoiding the delay or avoidance of taxable profit by placing it in reserves.

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Q. What aspect of reserving practices would governments be concerned about as collectors of taxes?
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