Jenna opened a successful restaurant. One night, after the restaurant

Jenna opened a successful restaurant. One night, after the restaurant had closed, a fire started when the electrical system malfunctioned.

In addition to the physical damage to the restaurant, Jenna lost profits that could have been earned while the restaurant was closed for repairs. The lost profits are an example of
A) direct loss.
B) nondiversifiable risk.
C) speculative risk.
D) indirect loss.

ANSWER

Answer: D