Which of the Following Is an Accurate Statement About Liability

question 33

Multiple Choice

Which of the following is an accurate statement about liability insurance policies?

• A)They cover bodily injury or property damage that result from the insured's business or professional pursuits.
• B)They typically provide the insured with coverage for punitive damages liability he may face.
• C)They typically do not provide the insured with coverage for the consequences stemming from his negligent acts.
• D)They may be used by the insured as a way of transferring risks associated with certain tort liability he may face.

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Definitions:

Fixed Expenses

Costs that remain constant regardless of the level of production or sales activities, such as rent or salaries.

Net Operating Income

is the profit a company generates from its operations, excluding taxes and interest, focusing on the core business activities.

Obsolete Desk Calculators

Outdated calculating tools that have been replaced by more modern devices but might still be found in storage or used in niche scenarios.

Financial Advantage

Refers to the benefit gained in financial terms, which could come from various sources such as lower costs, higher returns, or other financial gains.