All of the Following Are Disadvantages of Using Insurance in a Risk

question 40

Multiple Choice

All of the following are disadvantages of using insurance in a risk management program EXCEPT

• A)There is an opportunity cost because premiums must be paid in advance.
• B)Considerable time and effort must be spent selecting and negotiating coverages.
• C)It results in considerable fluctuations in earnings after losses occur.
• D)Attitudes toward loss control may become lax when losses are insured.

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Definitions:

Political Skill

A combination of social astuteness with the capacity to adjust and adapt behavior to the demands of different situations.

Ingratiating

An attempt to increase one’s attractiveness to others to influence their behavior

Self-promotion

The act of advocating for oneself to advance personal goals, often involving highlighting one's achievements and capabilities to others.

Organizational Citizen

An employee who goes beyond the required duties of their position to contribute positively to the organization's culture and functioning.