The Ability to Use One Resource to Provide Different Products

question 127

Multiple Choice

The ability to use one resource to provide different products and services is

• A)economies of scale.
• B)economies of scope.
• C)diversification.
• D)vertical integration.

Understand different strategies for managing risks, including avoidance, reduction, assumption, and shifting.

Identify the purposes and features of assigned risk pools.

Distinguish between key insurance concepts, including peril, hazard, risk, premium, and liability.

Recognize insurance coverage options for homeowners and how they protect against specific types of losses.

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Definitions:

Representative Sampling

The process of selecting a sample that closely matches the overall population in terms of key characteristics.

Mega-Discount Chain

A large-scale retail store or series of stores offering significant discounts on a wide range of merchandise to attract a broad customer base.

Cluster Sampling

A sampling technique where the population is divided into clusters, and a sample of these clusters is then selected for analysis.

Education Researcher

An individual specializing in studying, evaluating, and improving educational systems, methods, policies, and outcomes.