All of the Following Statements About Business Income Insurance Are

question 23

Multiple Choice

All of the following statements about business income insurance are true EXCEPT

• A)Business income is defined as total sales that would have been made if the loss had not occurred.
• B)Payroll is considered a continuing normal operating expense.
• C)Business income insurance does not cover the physical damage caused by a peril which created the interruption in business.
• D)The business income coverage form can be purchased with a coinsurance requirement.

Describe the fundamental attribution error and the actor/observer bias.

Distinguish between stable and unstable attributions.

Apply attribution theory to explain everyday events and behaviors.

Understand the heuristic biases in social cognition.

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Definitions:

Salvage Value

The estimated value for which an asset can be sold at the end of its useful life, typically used for depreciation calculations.

Internal Rate

Often referred to as the internal rate of return (IRR), it is a financial metric used to estimate the profitability of potential investments.

Annual Cost Savings

The reduction in costs realized over a year, from actions such as process improvement or cost-cutting measures.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows or to assess the attractiveness of an investment.