A Group of Farmers Agreed That If Any Farmer Suffered

question 5

Multiple Choice

A group of farmers agreed that if any farmer suffered a property loss,the loss would be spread over the entire group.In this way,each farmer is responsible for the average loss of the group rather than the actual loss that the farmer sustained.Which characteristic of insurance is embodied in this agreement?

• A)pooling of losses
• B)fortuitous losses
• C)risk avoidance
• D)indemnification

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Definitions:

Socialization Practices

Processes through which individuals learn the skills, knowledge, norms, and values necessary to perform their roles and adapt to a group or organizational culture.

Normative Commitment

An individual's psychological attachment to an organization, based on a sense of obligation.

Affective Commitment

An employee's emotional attachment to, identification with, and involvement in an organization.

Continuance Commitment

The degree to which employees feel committed to their organizations due to the costs associated with leaving.