Question

Which method of determining price is best suited for complex products?

a.

Formula method

b.

Cash flow method

c.

Both methods are equally suited

d.

None of the above

Answer: (b).Cash flow method Explanation:The cash flow method is best suited for complex products where expected incomes and outflows are projected into the future to determine the best premium rate or charges.

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Q. Which method of determining price is best suited for complex products?

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