The Goode Company Has a Plant in Newark, New Jersey

Multiple Choice

The Goode Company has a plant in Newark, New Jersey, and a plant in upstate New York. The company has had many prior damage losses due to riots in the Newark plant in the past, but no similar losses in the New York plant. The possibility of the riot losses in the New York plant are considered remote. There have been reports of community tensions in Newark recently. What is the maximum probable loss due to riots to the plants?

A) There is no maximum probable loss because nothing has happened yet
B) The maximum probable loss is complete damage to both plants
C) The maximum probable loss is minor damage to the plant in Newark
D) The maximum probable loss is complete destruction of the plant in Newark.