The Business Income and Extra Expense Coverage Form Covers Loss

question 16

Multiple Choice

The business income and extra expense coverage form covers loss of business income and continuing normal operating expenses.How is business income (revenue) defined?

• A)total sales
• B)total sales less cost of goods sold
• C)pre-tax net profit
• D)after-tax net income

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Definitions:

Measuring Device

An instrument used to ascertain the size, quantity, or degree of something.

Predictability

The degree to which a future event or outcome can be forecasted based on present or past data.

Reliability

The degree to which the result of a measurement, calculation, or specification can be depended on to be accurate.

Measurement

The process of obtaining a quantitative description of an attribute or phenomenon, often by comparing it to a standard unit.