The House Had Almost Been Framed When an F-5 Tornado

question 105

Multiple Choice

The house had almost been framed when an F-5 tornado ripped across the plains and turned the house back into a lumber pile,not stacked as neatly as it was originally.The homeowner's fears of:

• A)technical risks had come true.
• B)operating risks had come true.
• C)acts of God had come true.
• D)environmental risks had come true.

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Definitions:

Operating Income

A measure of a company's profitability that excludes non-operating income and expenses, focusing on core business activities.

Fixed Costs

Expenses that remain constant regardless of the business's production or sales activity, including insurance and lease payments.

Variable Cost

Expenses that vary directly with the production output, including costs of raw materials and direct labor.

Selling Price

The amount of money for which a product or service is sold to customers.