Which of the following limitations does a homeowners policy place on a home-run business?

A homeowners policy typically includes specific limitations regarding home-run businesses to manage risk and underwriting factors. The correct answer indicates that the business is confined to $10,000 in retail sales. This amount reflects the policy's intention to provide coverage for minor business activities without extending full commercial liability protection.

This limitation is crucial because it allows homeowners to engage in small-scale business activities, such as selling goods or services, while recognizing that larger operations can pose greater risks, which would require additional commercial coverage. The cap on retail sales ensures that homeowners do not inadvertently expose themselves to more substantial liabilities typical of larger businesses.

The other options do not accurately represent the typical conditions set by homeowners insurance policies. While some policies may have certain restrictions on employee numbers or operational hours, the primary concern remains the sales limit, which directly addresses the nature of the business and associated risks.