Lloyd's of London Is Perhaps Most Known For

question 119

Multiple Choice

Lloyd's of London is perhaps most known for:

• A) being the largest insurance company in the world.
• B) going out of business when it insured too many odd risks.
• C) offering insurance against unusual risks.
• D) being the oldest insurance company in the world.

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit. This figure shows how much each unit contributes to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change in total as production volume increases or decreases, such as rent and salaries.

Safety Margin

The difference between the actual level of sales or production and the break-even point, measuring the cushion a company has before it incurs losses.

Break Even Point

The financial analysis term where total revenues equal total expenses, and there is no profit or loss.