The Theory for Which Insurance Is Based Where a Protection

question 133

True/False

The theory for which insurance is based where a protection is purchased by many whose total payments are pulled together to pay off those few who actually incur a particular loss is called shared risk.​

---

Definitions:

Partnership Property

Assets owned by a partnership, regarded collectively as belonging to the partnership entity, not the individual partners.

Partner's Funds

Refers to the capital or resources invested in a partnership by its partners.

Partnership Liabilities

Debts or obligations for which partners in a business are mutually responsible.

Partnership Capital

The total resources contributed by partners to a partnership for carrying out its business activities.