GENERAL AVERAGE Definition

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GENERAL AVERAGE is the provision in maritime law where all shippers on a given voyage would reimburse the ship line in the event of vessel sinking or catastrophic damage. It also provides for the reimbursement to those shippers whose cargo was thrown overboard in order to save the vessel.

Learn new Accounting Terms

BUSINESS RISK see OPERATING RISK.

EXPENDITURE is a cost incurred in the normal course of business to generate revenues. See expenses.

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