Write TRUE or FALSE after each of the following statements. A loading is a reduction on the basic insurance premium charge because the customer insuring has a lower risk of claiming. Corporation Tax is a tax paid on the profits made by a company. Commercial rates are a tax paid by businesses to their local council. Indemnity is a principle of insurance that states you must reveal all relevant information when applying for insurance. Utmost good faith is a principle of taxation.

Leaving Cert Business Taxation: Write TRUE or FALSE after each o

Write TRUE or FALSE after each of the following statements - Leaving Cert Business - Question 14 - 2017

Question 14

Write TRUE or FALSE after each of the following statements. A loading is a reduction on the basic insurance premium charge because the customer insuring has a lower... show full transcript

Worked Solution & Example Answer:Write TRUE or FALSE after each of the following statements - Leaving Cert Business - Question 14 - 2017

Step 1

A loading is a reduction on the basic insurance premium charge because the customer insuring has a lower risk of claiming.

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Answer

FALSE: A loading is actually an increase in the premium due to the higher risk associated with the customer.

Step 2

Corporation Tax is a tax paid on the profits made by a company.

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Answer

TRUE: Corporation Tax is indeed a tax levied on the profits that companies earn.

Step 3

Commercial rates are a tax paid by businesses to their local council.

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Answer

TRUE: Businesses do pay commercial rates to local councils for the properties they occupy.

Step 4

Indemnity is a principle of insurance that states you must reveal all relevant information when applying for insurance.

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Answer

FALSE: This statement is more reflective of the principle of utmost good faith, rather than indemnity itself.

Step 5

Utmost good faith is a principle of taxation.

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Answer

FALSE: Utmost good faith is a principle in insurance, not taxation.

Write TRUE or FALSE after each of the following statements - Leaving Cert Business - Question 14 - 2017

Worked Solution & Example Answer:Write TRUE or FALSE after each of the following statements - Leaving Cert Business - Question 14 - 2017

A loading is a reduction on the basic insurance premium charge because the customer insuring has a lower risk of claiming.

Corporation Tax is a tax paid on the profits made by a company.

Commercial rates are a tax paid by businesses to their local council.

Indemnity is a principle of insurance that states you must reveal all relevant information when applying for insurance.

Utmost good faith is a principle of taxation.

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