QUESTION IMAGE
Question
20 shashi owns a spa and has five employees. she purchased a disability business overhead expense (boe) insurance policy which provides for benefits of $4,000 a month for two years. shashis monthly business expenses include the following: - employees salary - shashis salary - spa supplies - premises rent - internet & utilities which of these expenses will not be covered under shashis boe policy? a2rvdtiwdytyefiedwdycna0ngpudz09 a. ∘ premises rent b. ∘ shashis salary c. ∘ employees salary d. ∘ internet & utilities
A business overhead expense (BOE) insurance policy typically covers expenses necessary to keep the business operating, like rent, utilities, and employee salaries. The owner's (Shashi's) salary is usually not covered under BOE as BOE focuses on overheads to sustain the business, not the owner's compensation (which may be considered a draw or profit - related in some contexts, or outside the scope of overhead for business continuity). Premises rent, employees’ salary, and Internet & Utilities are typical overheads to keep the business running.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
b. Shashi’s salary