With which of the following are rental payments guaranteed to increase during the term of lease?
A. Escalator lease
B. Step-up lease
C. Index lease
D. None of the answers are correct.
Answer: B. Step-up lease
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Lisa has three fire insurance policies on her office building. The policy from company A is for $400,000, and the policies from companies B and C are for $100,000 each
If Lisa has a $360,000 loss, how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the insurers? A) each policy: $120,000 B) policy A: $160,000; policies B and C: $100,000 each C) policy A: $240,000; policies B and C: $60,000 each D) policy A: $360,000; policies B and C: nothing