Peter Jacobs Has Set Aside $5,000 in Case He Has

question 57

Multiple Choice

Peter Jacobs has set aside $5,000 in case he has an accident in his 2001 Honda Civic.He does not have collision insurance on this car.How is Peter managing his risk?

• A)Avoidance
• B)Reduction
• C)Assumption
• D)Shifting
• E)Creation

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Definitions:

Commercially Feasible

A product or project is considered commercially feasible if it is likely to generate a sufficient level of income to outweigh its costs and risks.

Tangible E&E Assets

Tangible Exploration & Evaluation Assets; physical assets used in the exploration and evaluation of mineral resources.

Fair Value

The estimated market price at which an asset or liability could be bought or sold in a current transaction between willing parties.