Reference no: EM131032113
1) With the aid of a mortgage from his bank, Alfred purchased a building containing five apartments. All of the apartments are rented to tenants. Briefly explain why:
a. The bank may have a financial loss if Alfred’s building is destroyed by fire
b. The tenants of the apartments may have a financial loss if Alfred’s building is destroyed by fire
2) Explain how a reduction in value might occur if repaired property is worth less than it would have been if it had never been damaged.
3) While Gary was driving his vehicle, he approached an intersection controlled by a traffic light. His light turned green, but just as he was about to enter the intersection he noticed another vehicle coming from his left through the red light. Gary abruptly halted his vehicle, narrowly missing the oncoming vehicle. If Gary asserted a liability claim against the driver of the other car would very likely succeed? Explain
4) Explain why involuntary employee separations ( for example, layoffs or firings) are not considered personnel losses.
5) Contrast a direct loss within indirect loss and give one example of each type of loss.
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With the aid of a mortgage from his bank
: With the aid of a mortgage from his bank, Alfred purchased a building containing five apartments. All of the apartments are rented to tenants. Briefly explain why: The bank may have a financial loss if Alfred’s building is destroyed by fire. The tena..
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