The Type of Insurance That Provides Protection Against a Type

question 74

Multiple Choice

The type of insurance that provides protection against a type of customer-oriented risk is

• A) general liability insurance.
• B) surety bonds.
• C) business interruption insurance.
• D) commercial property coverage.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to satisfy needs and wants.

Marginal Decision Maker

is an individual or entity that makes choices based on the additional cost or benefit of the next unit of consumption or production.

Comparative Advantage

The ability of an entity to produce a good or offer a service at a lower opportunity cost than others, leading to more efficient trade.