How Can a Homeowner Create a Defensible Space in Order

question 32

Multiple Choice

How can a homeowner create a defensible space in order to obtain fire insurance?

• A)Choose a home in a narrow canyon or wilderness area.
• B)Dig a ditch around the perimeter of the house.
• C)Install a fire-proof roof on the house.
• D)Clear ground duff and brush and cut down trees on all sides of the house.
• E)Choose a home built on the site of a previous fire.

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Definitions:

Selling Price

The amount for which a product is sold to the customer, generally set above the cost to include a profit margin.

Margin Of Safety

The difference between actual or expected sales and sales at the break-even point, measured in either units or revenue.

Break-Even Point

The quantity of production or sales at which total revenues equal total expenses, resulting in no net loss or gain.

Variable Expenses

Costs or expenses that vary in direct proportion to changes in business activity levels, such as sales volumes or production output.