A Contract of Insurance Is a Method of Purchasing Protection

question 16

Multiple Choice

A contract of insurance is a method of purchasing protection against a possible loss. The insurance company will and the risk of loss.

• A) change; manage
• B) sow; reap
• C) assume; payoff
• D) pool; isolate
• E) shift; spread

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Definitions:

Cash Flows

Cash flows denote the movement of money into and out of an enterprise, playing a crucial role in assessing its operational efficiency and financial stability.

Statement of Comprehensive Income

A financial report detailing all variations in equity over a period, excluding those changes caused by investments from and distributions to shareholders.

Self-sustaining

Capable of continuing or maintaining itself independently without external assistance.

Cash Flow from Assets

The total amount of money being transferred in and out of a company from its operational activities, investment activities, and financing activities, specifically related to its assets.