Differentiate among three types of liability insurance
What will be an ideal response?
Answer: (1) Public liability insurance protects the business against business risks associated with the company's property or employees. (2) Product liability insurance protects the business when someone claims its product caused damage, injury, or death. (3) Professional liability insurance protects the business when someone claims its professional services caused injury or harm.
Explanation: As examples, if a customer slips on the poorly maintained front steps of your building or is mistreated by one of your employees, public liability insurance will cover the customer's medical expenses or legal damages. American toymakers that imported toys made in China that turned out to contain child-hazardous levels of lead have been sued by consumers for product liability. Dentists and doctors have to carry professional liability insurance (called malpractice insurance), as do lawyers, accountants, engineers, and even hairstylists.
You might also like to view...
Component-based development's focus is on creating specific pieces of software that can only be used once
Indicate whether the statement is true or false
Assume that Omicron uses the entire $50 million to repurchase shares. The number of shares that Omicron will repurchase is closest to ________
Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicron's unlevered cost of capital is 8% and there are 10 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock. A) 0.73 million B) 1.09 million C) 0.9 million D) 1.82 million