The Following Table Indicates the Reductions in Total Losses Due

question 157

Multiple Choice

The following table indicates the reductions in total losses due to theft if a jewelry store hires additional security guards.
Table 12-1

Refer to Table 12-1. If the security guards can be hired for $75 per day, how many guards should the shop hire?

• A) two
• B) three
• C) four
• D) five
• E) six

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Definitions:

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and operating a business with the aim of making a profit.

Third Party

An entity involved in a transaction besides the two main parties; in insurance, the person other than the policyholder and the insurer who may be affected by or have a claim against the policy.

Costs

The amount that must be paid or spent to buy or obtain something.

Compensation

Payment or benefits received for services rendered or damages incurred; often used in the context of employment.