Question

Artificial loss: minor: 10% or less:

A) Significant artificial loss
B) Minor artificial loss
C) Artificial loss not applicable
D) Natural loss exceeding 10%

Answer 1

An artificial loss of 10% or less falls under the category of 'B) Minor artificial loss', as it signifies a loss that is not significant and is intentionally created within a small threshold.

Step-by-step explanation:

The term artificial loss typically refers to a loss that is intentionally created rather than occurring as a result of natural or market forces. In the context given, an artificial loss of 10% or less is being described. Choosing the correct answer requires understanding the definitions of the provided terms. In this case, because the loss is stated to be 10% or less and is artificial, the correct category would be 'B) Minor artificial loss', as it indicates that the loss is not significant and is within a minor threshold.