Loss Adjustment Expenses Refer to the Costs Surrounding the Loss

question 114

True/False

Loss adjustment expenses refer to the costs surrounding the loss settlement process.

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Definitions:

Net Income

Net income is the total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profitability.

Operating Cash Flows

Cash generated from a company's normal business operations, indicating its ability to generate enough cash to maintain or expand operations.

Sunk Cost

Expenses that have been paid and cannot be retrieved, and therefore, should not impact upcoming business strategies.

Opportunity Cost

The benefit foregone by choosing one alternative over another.