In Choosing a Form of Business Organization for a New

question 42

True/False

In choosing a form of business organization for a new enterprise,impor?tant factors include the liability of the owner.

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Definitions:

Premium

The amount paid for an insurance policy or the fee charged by insurers for providing coverage.

Comprehensive Coverage

A type of automobile insurance that provides protection against loss when the insured’s car is damaged or destroyed by fire, lightning, flood, hail, windstorm, riot, vandalism, or theft.

Actual Cash Value

The amount equal to the replacement cost of damaged or stolen property minus depreciation.

Liability

The condition of being legally accountable for certain actions or responsibilities, particularly regarding financial debts or legal duties.