The Pyro Corporation has outstanding twenty thousand shares of common stock, of which nineteen thousand are owned by Peter B.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The Pyro Corporation has outstanding twenty thousand
shares of common stock, of which nineteen thousand
are owned by Peter B. Arson; five hundred shares are
owned by Elizabeth Arson, his wife; and five hundred
shares are owned by Joseph Q. Arson, his brother. These
three individuals are the officers and directors of the
corporation. The Pyro Corporation obtained a $750,000
fire insurance policy to cover a certain building it
owned. Thereafter, Peter B. Arson set fire to the building, and it was totally destroyed. Can the corporation
recover from the fire insurance company on the
$750,000 fire insurance policy? Why or why not?

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