Chapter 7

Question 1

Income

Answer 1

Includes all monies from sales or services rendered by a busienss

Question 2

Fixed Expense

Answer 2

Those expenses that continue during the period of interruption

Question 3

Semi Variable Expenses

Answer 3

Those expenses which may or may not continue during the period of interruption

Question 4

Gross Profit

Answer 4

Sum produced by adding to the net profit all insured standing charges

Question 5

Net Profit

Answer 5

Gross profit less all other expenses insured by the business

Question 6

Actual Loss Sustained

Answer 6

The measure of recovery under the Gross Earnings Form - Refers to the amount the business would actually have earned had the loss not occured

Question 7

Ordinary Payroll Expense

Answer 7

Is the entire payroll expense for all employees of the insured, except officers, directors, whose services would not be dispensed with should the business be interfered or interrupted.

Question 8

Contributing Properties

Answer 8

The manufacturer or supplier upon whom the insured depends for material goods

Question 9

Recipient Properties

Answer 9

The customer who the insured depends upon to purchase its products