Nzundu and Hurry bought a building for sh. 12,000,000. Nzundu paid 8,000,000 while hurry paid 4,000,000. The building was insured for 8,000,000 against the risk of fire. Later the building was partially destroyed by fire to a tune of sh. 6,000,000
a) State the amount of compensation likely to be paid by the insurance company
b) Calculate the amount of compensation that each one will receive based on their contributions.

Answer:

a) State the amount of compensation likely to be
paid by the insurance company
Solution:
Compensation=sum insured/value of property

Share To Friends Via:

Explain the following as used in satisfaction of human wants. -Utility -Producer goods -Scarcity and choice -Scale of preference (Answered)
Explain the following as used in satisfaction of human wants. -Utility -Producer goods -Scarcity and choice -Scale of preference .
Posted On:Sun 7, March 2021 10:34:07 am

Outline four factors that may account for predominance of direct production in a country. (Answered)
Outline four factors that may account for predominance of direct production in a country. .
Posted On:Sun 7, March 2021 10:41:06 am

Differentiate between shares and debentures. (Answered)
Differentiate between shares and debentures. .
Posted On:Sun 7, March 2021 10:43:35 am

What do you understand by the following terms? -free goods -Producer goods -Public goods -Non-material goods (Answered)
What do you understand by the following terms? -free goods -Producer goods -Public goods -Non-material goods .
Posted On:Sun 7, March 2021 10:50:07 am

The following information was obtained from the books of JASHO TRADERS at the end of a trading period. Opening stock-sh. 65,000 Sales- sh. 300,000 Purchases- sh.180,000 Sales return- 5,000 Closing stock 42,000 Calculate the gross profit of the business (Answered)
The following information was obtained from the books of JASHO TRADERS at the end of a trading period. Opening stock-sh. 65,000 Sales- sh. 300,000 Purchases- sh.180,000 Sales return- 5,000 Closing stock 42,000 Calculate the gross profit of the business .
Posted On:Sun 7, March 2021 10:56:36 am

List four functions of the Kenya Bureau of statistics. (Answered)
List four functions of the Kenya Bureau of statistics. .
Posted On:Sun 7, March 2021 10:59:03 am

State four factors that limit the number of entrepreneurs in an area. (Answered)
State four factors that limit the number of entrepreneurs in an area. .
Posted On:Sun 7, March 2021 11:00:47 am

The figure below shows an increase in supply for a commodity from ss to s1s1 State four possible causes that have led to this situation. (Answered)
The figure below shows an increase in supply for a commodity from ss to s1s1 State four possible causes that have led to this situation. .
Posted On:Sun 7, March 2021 11:05:58 am

Outline four reasons why inland water transport is not too popular as a means of transport in Kenya. (Answered)
Outline four reasons why inland water transport is not too popular as a means of transport in Kenya. .
Posted On:Sun 7, March 2021 11:10:21 am

Outline four types of errors that may cause a trial balance not to balance (Answered)
Outline four types of errors that may cause a trial balance not to balance .
Posted On:Sun 7, March 2021 11:12:13 am

Highlight four circumstances under which a firm may acquire oligopoly power (Answered)
Highlight four circumstances under which a firm may acquire oligopoly power .
Posted On:Sun 7, March 2021 11:14:38 am

Outline four importance uses of measuring national income in a country. (Answered)
Outline four importance uses of measuring national income in a country. .
Posted On:Sun 7, March 2021 11:16:23 am

Outline factors that will influence choice of an office layout (Answered)
Outline factors that will influence choice of an office layout .
Posted On:Sun 7, March 2021 11:17:45 am

Give four ways in which consumers may benefit when producers compete in product promotion (Answered)
Give four ways in which consumers may benefit when producers compete in product promotion .
Posted On:Sun 7, March 2021 11:19:45 am

The following details were extracted from the books of Omino enterprises for the year ended 31st dec 2009 Opening capital sh. 105,000 Capital introduced sh 15,000 Drawings sh. 6,000 Closing capital sh. 135,000 Determine the profit or loss for the year. (Answered)
The following details were extracted from the books of Omino enterprises for the year ended 31st dec 2009 Opening capital sh. 105,000 Capital introduced sh 15,000 Drawings sh. 6,000 Closing capital sh. 135,000 Determine the profit or loss for the year. .
Posted On:Sun 7, March 2021 11:22:08 am

In the below spaces, fill by stating whether each of the following transactions will increase, decrease or have no effect to the capital of the business a)The business made profit b)Bought stock of goods c)Withdrawal of stock for own use. d)Paid creditors by giving up an old machine (Answered)
In the below spaces, fill by stating whether each of the following transactions will increase, decrease or have no effect to the capital of the business a)The business made profit b)Bought stock of goods c)Withdrawal of stock for own use. d)Paid creditors by giving up an old machine .
Posted On:Sun 7, March 2021 11:26:10 am

State four principles of co-operatives movement in Kenya. (Answered)
State four principles of co-operatives movement in Kenya. .
Posted On:Sun 7, March 2021 11:27:30 am

List four documents used in home trade in the order stage. (Answered)
List four documents used in home trade in the order stage. .
Posted On:Sun 7, March 2021 11:29:00 am

Mutua and Mutuku both have taken life insurance policies. Outline the reasons why the two may not pay the same amounts as premiums (Answered)
Mutua and Mutuku both have taken life insurance policies. Outline the reasons why the two may not pay the same amounts as premiums .
Posted On:Sun 7, March 2021 11:31:13 am

Highlight four disadvantages of ageing population (Answered)
Highlight four disadvantages of ageing population .
Posted On:Sun 7, March 2021 11:33:00 am

Highlight four benefits that may occur to an organization that practices effective communication (Answered)
Highlight four benefits that may occur to an organization that practices effective communication .
Posted On:Sun 7, March 2021 11:34:49 am

State four advantages of bonded warehouse to the government. (Answered)
State four advantages of bonded warehouse to the government. .
Posted On:Sun 7, March 2021 11:36:04 am

Identify the factors that may lead to an increase of demand of a product in the market. (Answered)
Identify the factors that may lead to an increase of demand of a product in the market. .
Posted On:Sun 7, March 2021 11:37:26 am

The following are some of the source documents used in business i)Credit note received ii)Invoice issued iii)Credit note issued iv)Cash sale slip Match each of the following books of original entry with relevant source document a) Cash book b) Sales day book c) Return inward day book d) Return outward day book (Answered)
The following are some of the source documents used in business i)Credit note received ii)Invoice issued iii)Credit note issued iv)Cash sale slip Match each of the following books of original entry with relevant source document a) Cash book b) Sales day book c) Return inward day book d) Return outward day book .
Posted On:Sun 7, March 2021 11:43:04 am

Highlight four services that the central bank of Kenya may offer as a banker to commercial bank. (Answered)
Highlight four services that the central bank of Kenya may offer as a banker to commercial bank. .
Posted On:Sun 7, March 2021 11:44:52 am

Define the following terms as used in business studies; i)Economics ii)Entrepreneurship iii)Opportunity Cost iv)Scale of preference. (Answered)
Define the following terms as used in business studies; i)Economics ii)Entrepreneurship iii)Opportunity Cost iv)Scale of preference. .
Posted On:Sun 7, March 2021 12:46:14 pm

Highlight four reasons why food is an important basic need. (Answered)
Highlight four reasons why food is an important basic need. .
Posted On:Sun 7, March 2021 12:47:30 pm

Outline four importance of warehouse to a consumer. (Answered)
Outline four importance of warehouse to a consumer. .
Posted On:Sun 7, March 2021 12:48:59 pm

Outline four requirements for one start a limited liability company as one of the forms of business units (Answered)
Outline four requirements for one start a limited liability company as one of the forms of business units .
Posted On:Sun 7, March 2021 12:50:31 pm

Highlight four factors a firm may take into account when deciding on the products to produce. (Answered)
Highlight four factors a firm may take into account when deciding on the products to produce. .
Posted On:Sun 7, March 2021 12:51:47 pm