The extra expense incurred by a business to stay in operation following a fire is an example of a(n)
A)fundamental risk.
B)speculative risk.
C)direct loss.
D)indirect loss.

Question

Quizplus · Accepted Answer

The extra expense incurred by a business to stay in operation following a fire is an example of an indirect loss, as it is a consequence of the fire and not a direct result of it. Indirect losses are losses that result from direct losses and can include additional expenses incurred to keep the business running, lost profits due to the interruption of business operations, and other similar expenses.

The Extra Expense Incurred by a Business to Stay in Operation