chap 6 definition of bus income
by Ricardo1 Parlade1 - Book definition is b. but Quiz has a. as correct I believe the OLT Quiz is wrong pls. verify.
4
Marks: 0.9/1
Under the Business Income Coverage Form, to be in compliance with the Coinsurance condition, the amount of insurance must be equal to the coinsurance percentage times the total of what?
Choose one answer.
a. Pre tax profit/loss and all operating expenses | ||
b. Pre tax profit/loss and only continuing normal operating expenses | ||
c. Post tax profit/loss and only continuing normal operating expenses | ||
d. Post tax profit/loss and all operating expenses |
Correct
Marks for this submission: 1/1. With previous penalties this gives 0.9/1.
Re: chap 6 definition of bus income
by Matti1 Stronach1 - I looked the answer up in the manual and on pg. 105 in the coinsurance part, it says:
For compliance with the coinsurance condition, the amount of insurance must be equal to the coinsurance % times the total of net pre-tax profit/ loss and all operating expenses that would have been earned for the 12 months...
Re: chap 6 definition of bus income
by Ricardo1 Parlade1 - Matti-ok thanks- I was looking at the definition on 104 instead of for compliance.