Use the Information Below to Answer the Following Questions

question 15

Multiple Choice

Use the information below to answer the following questions:
The percentage of completion profit for a particular project of Redgate Ltd was $200 000 for year 1 and $220 000 for year 2 (completion) .
-What difference would there be to the total profit for the two years if the completion of production method were used?

• A) Profit would be $200 000 higher.
• B) Profit would be $420 000 higher.
• C) Profit would be $420 000 lower
• D) There would be no difference.

Identify the conditions under which an insurance contract can be considered ambiguous, and the principles for resolving such ambiguities.

Grasp the requirements for an insurable interest and how it impacts the ability to procure and maintain insurance coverage.

Understand the role of arbitration clauses in insurance policy disputes and how disputes can be resolved without court intervention.

Recognize different types of insurance coverage (e.g., casualty, liability, property, life) and the specific risks they address.

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Definitions:

Functional Lines

Divisions within an organization that are categorized based on specific functions or roles, such as marketing, finance, or operations.

Employee Performance

An assessment of how effectively an employee performs their job duties and responsibilities.

Similar Skills

Refers to abilities or expertise that are closely comparable or match very closely between individuals or within various contexts.

Functional Division

A structure in an organization where departments are divided based on specific functions or roles such as marketing, finance, and production.