Ronaldo's Foods Considered Building a Store in a New Location

question 56

Multiple Choice

Ronaldo's Foods considered building a store in a new location.The owners and their accountants decided that this was not the profitable thing to do.However,soon after they made this decision,both the interest rate and the cost of building the store changed.In which case do these changes both make it more likely that they will now build the store?

• A)Interest rates rise and the cost of building the store rises.
• B)Interest rates rise and the cost of building the store falls.
• C)Interest rates fall and the cost of building the store rises.
• D)Interest rates fall and the cost of building the store falls.

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Definitions:

Revenue Losses

Financial losses incurred by a business, often as a result of decreased sales, lower pricing, or external factors affecting income.

Liability Insurance

Insurance coverage that protects an individual or entity from the risk of being liable for causing harm or damage to others.

Co-Insurance Clause

A provision in an insurance policy that requires the policyholder to bear a portion of the loss in return for a lower premium.

Insurance Claimed

Insurance claimed involves a request for payment based on the terms of an insurance policy, following a loss, damage, or occurrence covered by the policy.