Jerry Has a Property Insurance Policy on a Building That

question 81

Multiple Choice

Jerry has a property insurance policy on a building that would cost $200,000 to replace. His insurance policy is written on an actual cash value basis. His building suffers fire damage that has a replacement cost of $50,000. The building is 2 years old, with an estimate useful life of 20 years. How much will he collect for the fire damage?

• A) $5,000
• B) $10,000
• C) $25,000
• D) $45,000

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Definitions:

Functional Structures

An organizational format that divides the company based on specialized functional areas, such as marketing, finance, and engineering.

Flexibility

The ability to adapt to changes, challenges, or new circumstances quickly and efficiently in both personal and professional contexts.

Functional Organizational Structure

A type of organizational structure where the company is divided into departments based on their function within the organization.

Span of Control

The number of subordinates directly managed or supervised by an individual in an organizational hierarchy.