To Cover the Costs That Result If Some Aspect of the Business

question 13

Multiple Choice

To cover the costs that result if some aspect of the business causes harm to a third party or someone else's property, a firm would purchase

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

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Definitions:

Earnings Before Interest

An indicator of a company's profitability calculated by subtracting all expenses except interest from revenues, commonly referred to as EBIT.

Tax (EBIT)

Taxation calculated on Earnings Before Interest and Taxes, representing the income tax expense charged on a company's operating profit.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods to identify trends and growth patterns.

Percentage Change

A mathematical calculation that expresses the degree of change over time as a percentage.