An Individual Has an Insurable Interest in Property Whenever That

question 12

Multiple Choice

An individual has an insurable interest in property whenever that person derives a(n) ________

• A) above fair market value quote for the property.
• B) ownership interest separate from a lending agency.
• C) a clear title to the property.
• D) fair market selling price.
• E) financial benefit from its continued use.

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Definitions:

Operating Income

Earnings from a company’s primary business activities, excluding deductions of interest and taxes.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor.

Transfer Price

The price at which goods and services are sold between divisions within the same company, often used for accounting and tax purposes.

Variable Cost

A cost that varies directly and proportionally with changes in production volume or activity level, such as materials and labor costs.