To Insure Their Assets Against Hazards Such as Fire,storm Damage,vandalism,earthquakes,and

question 51

Multiple Choice

To insure their assets against hazards such as fire,storm damage,vandalism,earthquakes,and other natural and environmental risks,firms commonly purchase:

• A)key personnel insurance.
• B)business liability insurance.
• C)business interruption insurance.
• D)property insurance.

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Definitions:

Noncash Expenses

Expenses recorded on an income statement that do not involve actual cash flow, such as depreciation or amortization.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, representing the benefits one could have received by taking a different decision.

Opportunity Cost

The economic consequence of not opting for the immediate secondary option when a decision is made.

Salvage Value

An approximation of an asset's value at the conclusion of its effective lifespan.