To Protect the Firm Against the Loss of Earnings If

question 43

Multiple Choice

To protect the firm against the loss of earnings if the business operations are disrupted due to fire,accident,or some other insured peril,a firm would purchase:

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

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct material and labor costs.

Liabilities

Amounts owed to creditors in the form of debts and other obligations.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives.

Investing Activities

Transactions that involve the purchase or sale of long-term assets and investment securities that are not considered cash equivalents.