David Owns a Liquor Store in a High-Crime Area

question 28

Multiple Choice

David owns a liquor store in a high-crime area.In order to obtain a reduced insurance premium,David promised to have a burglar alarm operating at the store when the store was closed.This agreement,which was incorporated into the insurance contract,is an example of a

• A)representation.
• B)binder.
• C)rider.
• D)warranty.

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Definitions:

Value-Based Pricing

A pricing strategy where the price of a product or service is determined primarily by the perceived value to the customer rather than the cost of production.

Useful Life

The expected period of time during which an asset is useful to the owner for the purpose for which it was acquired, often impacting depreciation calculations.

Preventive Maintenance

Scheduled maintenance activities aimed at preventing unexpected equipment failures and prolonging the life of the equipment.

Economic Value

The measure of the benefit provided by a good or service to an economic agent, often represented in terms of willingness to pay for it.