A Firm That Buys an Insurance Policy to Protect Itself

question 128

Short Answer

A firm that buys an insurance policy to protect itself against automobile wrecks is practising
risk avoidance.
risk transfer.
risk acceptance.
risk control.
risk retention.

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Definitions:

Faulty Switch

A defective switch that fails to perform its intended function, which can be due to manufacturing defects, wear and tear, or damage.

Defective Cord

A cord or cable that fails to meet quality standards or is malfunctioning, potentially causing safety or operational issues.

Appliance Store

A retail establishment that sells household electrical machines and devices for tasks such as cooking, cleaning, and food preservation.

Blood Pressure-Lowering Medication

Drugs prescribed to reduce high blood pressure, thereby lowering the risk of heart disease and stroke.