Which of the Following Statements About Liability Risks Is (Are)true

question 36

Multiple Choice

Which of the following statements about liability risks is (are) true?
I.Future income and assets can be attached to pay judgments if inadequate insurance is carried.
II.There is an upper limit on the amount of loss.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Fixed Component

The part of total costs in a business that remains constant regardless of the level of production or business activity.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the vertical distances of the points from the line.

Units Produced

The total quantity of finished goods a company manufactures in a specific period.

Fixed Component

A cost or portion of cost that remains unchanged regardless of the level of output or activity.