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Joe purchased his home five years ago for $100,000. To protect his investment, he also purchased homeowners insurance at that time with a limit equal to the full value of his home ($100,000). The homeowners policy covers the dwelling on a replacement cost basis, subject to an 80% coinsurance clause. Because of rising construction costs over the past 5 years, the replacement cost of the dwelling has increased to $150,000. However, Joe never increased the limit of his policy. A severe windstorm has damaged Joe's roof, and the damage is estimated at $12,000.
How much of the $12,000 loss will be paid by Joe's homeowner?s policy? (Ignore deductibles).
What type of business structure do you think would be the best one to adopt for the particular type of business you have described in question 1, above?
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Many of these subsidies are scheduled to end in upcoming years. In what other ways might the PPACA be supported financially? Explain.
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If Mueller decided to invest in production operations in China, how should they go about implementing such a decision?
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