Peril Is Defined as

question 60

Multiple Choice

Peril is defined as

• A)the refusal by an insurance company to pay for the covered loss.
• B)the cause of risk.
• C)the cause of a possible loss.
• D)an uncertainty as to loss.
• E)risk

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Definitions:

Average Rate of Return

A measure of the profitability of an investment, calculated as the average annual profit returned on an investment, expressed as a percentage of the initial investment cost.

Total Net Income

The total amount of earnings left over for a business after all expenses have been deducted from total revenues.

Present Value Factor

A coefficient used to calculate the present value of a future amount of money or stream of cash flows, based on a specific discount rate.

Cash Payback Period

Cash Payback Period is the amount of time it takes for an investment to generate enough cash flows to recover its initial cost.