Which of the Following Types of Loss Exposures Are Best

question 12

Multiple Choice

Which of the following types of loss exposures are best handled by the use of avoidance?

• A)low-frequency,low-severity
• B)low-frequency,high-severity
• C)high-frequency,low-severity
• D)high-frequency,high-severity

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Definitions:

Product Line

A series of related products offered by a single company designed to serve a particular customer need or market.

Goods

Goods are tangible products or items that can be sold or bought, providing satisfaction and value to the consumer, ranging from food items to electronic gadgets.

Cannibalization

When a company's new product eats into the sales of one of its existing products.

Disruptive Technology

An innovation that significantly alters the way consumers, industries, or businesses operate, often displacing established technologies.