Which of the Following Is True of Coinsurance

question 4

Multiple Choice

Which of the following is true of coinsurance?

• A)It is rarely found in property insurance policies.
• B)It allows the insured to pay an extra premium initially in exchange for a guaranteed option to buy more insurance at certain specified times later.
• C)It excuses the insured from paying premiums if he or she becomes disabled.
• D)It is a provision under which the insurer and the insured share costs,after the deductible is met,according to a specific formula.

Distinguish between the corporate structure and other forms of business organizations (proprietorship and partnership) in terms of liability, ease of ownership transfer, attraction of investments, and the principal-agent problem.

Understand the importance of operational efficiency for business owners and its impact on income.

Identify the basic legal forms of business enterprise and their characteristics.

Recognize the characteristics and implications of different ownership structures on liability and income distribution.

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Definitions:

Customers Served

The number or segment of clients who receive services or purchase products from a business within a given time frame.

Revenue

The total amount of money received by a company for goods sold or services provided during a specific period.

Flexible Budget

A budget designed to adapt to changes in activity or volume levels, ensuring more accurate budgeting and variance assessments.

Meals Served

The total number of meals prepared and provided to customers or clients over a specific period.