When a Business Practices Risk Management,the Purchase of an Insurance

question 58

Multiple Choice

When a business practices risk management,the purchase of an insurance policy is risk

• A)avoidance.
• B)transfer.
• C)assumption.
• D)reduction.

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Definitions:

Market Price

The price at which goods can be sold or bought in a market, reflecting the supply and demand dynamics at any given time.

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output supplied by the industry.

Technology Improvement

Enhancements or advancements in technological capabilities, leading to more efficient processes or products.

Economic Losses

Financial losses experienced by a business or economy, often resulting from unfavorable business conditions or poor investment decisions.