Henderson Owned a Concrete Block Building Valued at $20,000

question 6

True/False

Henderson owned a concrete block building valued at $20,000. Because it was virtually fireproof, he insured it for only $10,000 under a policy of insurance which contained an 80% co-insurance clause. Some time later, the building was damaged by fire. If the fire damage was $8,000, the insurer would only be obliged to pay $5,000 of the claim.

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Definitions:

Satisfied Customers

Customers who have their needs and expectations met or exceeded by a company's products or services, which often leads to repeat business and positive word-of-mouth.

Bottom-line Profits

The net income a company earns after all expenses and taxes have been deducted from total revenue.

Organization Chart

A diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Fishbone Diagram

A visual tool used for systematic problem analysis, also known as the Ishikawa diagram, it helps identify, explore, and display the possible causes of a specific problem.