When Determining Responsibility for Property Damage,what Is a Good Rule

question 34

Multiple Choice

When determining responsibility for property damage,what is a good rule of thumb to obey?

• A) Always purchase insurance.
• B) "Caveat emptor," or buyer beware.
• C) The real estate agent is always liable.
• D) The government will always cover the costs of the damage.
• E) The seller is never responsible.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Fixed Expenses

Fixed expenses are costs that do not change with the volume of output produced by a company, such as rent or insurance.

Operating Results

The financial outcomes of a company's core business operations, often represented by its income or loss from operations before interest and taxes.

Financial Advantage

A benefit or edge a person or business has that allows for better financial performance or opportunities than competitors.