Which of the Following Statements Is True About a Business

question 37

Multiple Choice

Which of the following statements is true about a business income coverage form?

• A)This policy protects the insured against business interruption losses, but not against extra expense losses.
• B)This policy covers all lost revenues because those revenues generally cover expenses.
• C)The policy's intention is to maintain the insured's same financial position with or without a loss.
• D)Under this policy, businesses that sustained losses because of the economic backlash and fear after September 11, 2001, were covered for their loss of income.
• E)Extra expenses incurred by businesses following property damage are not covered by this policy.

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Definitions:

Rights Offering

A financial mechanism by which a company offers its existing shareholders the opportunity to purchase additional shares directly, often at a discount.

Subscription Price

The cost at which existing shareholders can purchase additional shares of stock, typically lower than the current market price.

Market Price

The current price at which an asset or service can be bought or sold in a given market.