What is it about liability coverage that makes it so important?
A) There is no way to know in advance what your potential liability loss will be.
B) Huge sums of money are handed out in settlements over lawsuits over auto accidents.
C) This coverage will pay all legal costs should you be involved in a civil case arising from an accident.
D) All of the above are correct.
Answer: D
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Fargo Company's outstanding stock consists of 400 shares of noncumulative 5% preferred stock with a $10 par value and 3,000 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paidyear 1$20,000year 2$6,000year 3$32,000The amount of dividends paid to preferred and common shareholders in year 1 is:
A. $4,000 preferred; $16,000 common. B. $200 preferred; $19,800 common. C. $20,000 preferred; $0 common. D. $17,000 preferred; $3,000 common. E. $10,000 preferred; $10,000 common.
A maximization objective function could be used by the modeler in any of the following situations except:
a. When trying to optimize profit. b. When trying to reach production levels. c. When trying to improve customer satisfaction. d. When trying to optimize cost.
Which of the following types of brands can be part of a company's brand portfolio?
a. Master Brands b. Sub-Brands c. Smaller Local Brands d. All of the type of brands above
Handerson Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateDirect materials 8.5kilos$6.00per kiloDirect labor 0.4hours$20.00per hourVariable overhead 0.4hours$6.00per hourThe company reported the following results concerning this product in August. Actual output 3,200unitsRaw materials used in production 29,030kilosPurchases of raw materials 31,600kilosActual direct labor-hours 1,160hoursActual cost of raw materials purchases$195,920 Actual direct labor cost$22,736 Actual variable overhead cost$7,540 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.The variable overhead rate variance for August is:
A. $640 F B. $580 F C. $580 U D. $640 U