The Business Income and Extra Expense Coverage Form Covers Loss

question 16

Multiple Choice

The business income and extra expense coverage form covers loss of business income and continuing normal operating expenses.How is business income (revenue) defined?

• A)total sales
• B)total sales less cost of goods sold
• C)pre-tax net profit
• D)after-tax net income

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Definitions:

Intangibles

Intangibles refer to non-physical assets that have value, such as intellectual property, goodwill, and brand recognition.

Proceeds

The amount of money obtained from an event or transaction, such as the sale of goods or property.

Creditors

Creditors are individuals, businesses, or entities that are owed money by debtors, typically arising from the provision of goods, services, or loans.

Repossess Property

The act of a lender taking back an object, typically a vehicle or real estate, from the borrower due to failure to meet the terms of the loan agreement.