Which of the Following Statements About the Business Income Coverage

question 32

Multiple Choice

Which of the following statements about the business income coverage form is true?

• A)Business income is defined as gross earnings before taxes.
• B)Payroll is excluded unless it is specifically added.
• C)The form covers loss of business income and extra expenses incurred during restoration.
• D)The form can be used by a manufacturing operation only.

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Definitions:

Average Costs

The total cost of production divided by the number of goods produced, representing the cost per unit of output.

Diseconomies of Scale

The situation in which a firm's long-run average costs begin to increase as the firm expands output beyond a certain point.

Student Enrollment

The process by which students register for and commit to participating in educational programs or courses at an institution.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.