What Options Must a Business Owner Decide Upon When Considering

question 26

Multiple Choice

What options must a business owner decide upon when considering property insurance?

• A) getting coverage for replacement value or actual cash value
• B) getting coverage for the various forms of perils that are insurable by law
• C) negotiating a non cancellation or severability clause
• D) negotiating to remove the exclusion clauses that fall within the intent of the policy

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Definitions:

Spin-out

A type of corporate restructuring where a division of a parent company becomes an independent business. The parent company may retain a stake in the new company.

IPO

An Initial Public Offering (IPO) is the process through which a private company offers shares to the public for the first time to raise capital.

Floatation Costs

Expenses incurred by a company in issuing new securities, including fees to underwriters, legal fees, and registration fees.

Firm Commitment

An agreement where an underwriter guarantees to buy and sell all securities from the issuing company at an agreed-upon price.