Solve the Problem. -The Corner Cafe Has a Replacement Cost of $232,000 and of $232,000

question 108

Multiple Choice

Solve the problem.
-The Corner Cafe has a replacement cost of $232,000 and is insured for $174,000 with an 80% coinsurance clause. The building has a fire loss of $24,500. How much will the insurance company
Pay?

• A)$18,375
• B)$24,500
• C)$27,563
• D)$22,969

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Definitions:

Incidental Learning

Learning that happens unintentionally or without the goal of acquiring specific knowledge, occurring as a secondary aspect of a primary activity.

Organizational Buying Process

The Organizational Buying Process is the series of steps and decision-making criteria that businesses and institutions use to evaluate and purchase products or services for operational needs.

Prospect Theory

A behavioral economic theory that describes how people decide between probabilistic alternatives that involve risk.

Problem Recognition

The initial step in the consumer decision process, where a consumer identifies a need or problem that requires a solution or purchase.