Question

A Business Overhead Expense policy, as a form of disability insurance, provides payments for all of the following, EXCEPT:

A. Raw materials used to manufacture goods sold.
B. Employee wages.
C. Taxes, utilities, rent.
D. Owner's income.

Answer 1

A Business Overhead Expense policy covers expenses that are necessary for a business to continue running in the owner's absence, except for the owner's income. All the above are correct.

Step-by-step explanation:

A Business Overhead Expense policy, as a form of disability insurance, provides payments for all of the following, EXCEPT:

1. Raw materials used to manufacture goods sold.
2. Employee wages.
3. Taxes, utilities, rent.
4. Owner's income.

A Business Overhead Expense policy covers expenses that are necessary for a business to continue running in the owner's absence. It typically includes items such as rent, utilities, taxes, and employee wages, but it does not cover the owner's income. The purpose of this policy is to ensure that essential business expenses can still be paid even if the owner is unable to work due to a disability.