AFP
CTP · Question #69
(Topic 1) A distribution business has used several bank loans to finance its expansion plans. After a fire destroyed the company's facility and inventory, it went out of business due to the loss of…
The correct answer is D. Business interruption. See the full explanation below for the reasoning.
Question
- (Topic 1)
A distribution business has used several bank loans to finance its expansion plans. After a fire destroyed the company’s facility and inventory, it went out of business due to the loss of revenue during the month it was closed. What type of insurance coverage should the company have had to prevent its demise?
Options
- ACost reimbursement
- BProperty
- CGeneral liability
- DBusiness interruption
How the community answered
(24 responses)- A13% (3)
- B4% (1)
- C4% (1)
- D79% (19)
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