Which of the Following Types of Insurance Is It Advisable

question 57

Multiple Choice

Which of the following types of insurance is it advisable for a business owner to obtain when starting a new business on leased premises that will be visited by members of the public?

• A)Medical insurance
• B)Professional indemnity insurance
• C)Pubic liability insurance
• D)Tort Insurance

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Definitions:

Annual Depreciation

The amount of an asset’s cost allocated each year over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Useful Life

The estimated duration of time over which an asset is expected to be functional and contribute to a company's operations.

Revenue Expenditures

Short-term expenses incurred during normal business operations that are charged against revenue in the period they are incurred.

Capital Expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment.