Post Utme Bells University 2020 Commerce Question 14

Practice objective / multiple choice question 14 from the 2020 Post Utme Bells University Commerce examination.

Post Utme Bells University 2020 Commerce Objective / Multiple Choice
Question 14 POST_UTME_BELLS_UNIVERSITY • 2020 • COMMERCE • objective

A company is considering purchasing a liability insurance policy that has a premium of ₦100,000 per year. The policy has a deductible of ₦50,000 and a maximum payout of ₦500,000. If the company expects to incur a loss of ₦200,000 per year, should it purchase the insurance policy?

Answer Options

Correct Answer A. Yes, the company should purchase the insurance policy
B. No, the company should not purchase the insurance policy
C. The company should purchase the insurance policy only if the loss is greater than ₦500,000
D. The company should purchase the insurance policy only if the loss is less than ₦50,000
Correct Answer
A
Correct Option:
Yes, the company should purchase the insurance policy

About This Question

This is Post Utme Bells University 2020 Commerce Question 14. It is one of the objective questions from the 2020 Post Utme Bells University Commerce examination.

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