Indirect losses:

a. none of the answers is correct.

b. include reductions in net profits that occur as a consequence of direct losses, such as the loss of normal profits and continuing and extra expense when production is curtailed or stopped due to direct damage to physical assets.

c. in insurance literature means that in addition to expected losses, premium includes additional charge to cover the insurer's administrative costs and provide a reasonable expected return on the insurer's capital.

d. requires individual and businesses to pursue activities until the marginal benefit equals to marginal cost.

e. is the firm value without risk minus cost of risk.