The Best Reason Property and Liability Insurance Coverage Will Contribute

question 32

Multiple Choice

The best reason property and liability insurance coverage will contribute to a successful financial plan is because

• A)you need to protect other people from injury.
• B)it is an affordable method of protecting your wealth.
• C)you can underwrite the risk for all of the losses you may encounter.
• D)you can insure even the low possibility risk opportunities, preserving all assets.

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Definitions:

Inventory

Assets held for sale in the ordinary course of business, or materials and supplies that are used in the production process to manufacture goods.

Customer List

A record or database containing information about a business's customers, including their contact information, purchase history, and preferences.

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount.

Amortization

The systematic reduction of the value of an intangible asset over its useful life to reflect its declining value or the allocation of the cost of an intangible asset over a period of time.