Your Business Premises Were Flooded Because Old Water Pipes Burst

question 20

Multiple Choice

Your business premises were flooded because old water pipes burst in the premises next door.If you claim for the sales you missed while your place was being repaired,the type of loss you would claim for is known as:

• A)floodgate loss.
• B)collateral property loss.
• C)intangible capital loss.
• D)pure economic loss.
• E)A and B above.

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Definitions:

Total Stockholders' Equity

The total amount of funds contributed by shareholders and retained earnings within a company.

Total Liabilities

The total of all financial obligations owed by a business to creditors, including loans, accounts payable, and other debts.

Retained Earnings

The portion of a company's profits that are not distributed as dividends to shareholders but are kept by the company for reinvestment.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.