In the Context of Insurance, What Does the Term Premium

question 76

Multiple Choice

In the context of insurance, what does the term premium refer to?

• A) the money received from the defaulting party
• B) the money paid to the insurance company
• C) the money paid to insured after an accidental damage
• D) the money paid to insurance brokers as fee

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Definitions:

Fixed Assets

Long-term tangible assets that are used in the operations of a business, such as buildings and machinery.

Net Working Capital Turnover

A measure of how effectively a company uses its net working capital to generate sales.

Total Fixed Assets

The combined value of all long-term assets that a company owns, which are not expected to be converted to cash within a year.

Long-Term Liabilities

Long-term liabilities are debts or obligations that are due more than one year in the future, impacting a company's long-term financial sustainability and planning.