If Insurance Policies Were Not Designed to Support the Principle

question 52

True/False

If insurance policies were not designed to support the principle of indemnity, then we would have fewer moral hazards in our society.

---

Definitions:

Merchandise Inventory

Goods that a company intends to sell to customers that are considered as current assets on the balance sheet.

Freight Charge

The cost associated with the transportation of goods from one place to another.

Store Equipment

Fixed assets like shelves, cash registers, and display units used in the operations of a retail store.

Display Rack

A fixture in stores and exhibitions used to showcase products or materials to customers and visitors.