What of the Following Statements Is True About Risk Assumption

question 42

Multiple Choice

What of the following statements is true about risk assumption?

• A)Retention is especially attractive to small organizations.
• B)Many large corporations use captives, which are a form of reinsurance, to transfer their risk.
• C)When a business creates a subsidiary to handle the risk exposures, the business creates a captive.
• D)A captive firm is independent of its parent company.
• E)When an organization uses a highly formalized method of retention of a risk, it is said the organization has reinsured the risk.

Understand the different terminologies and structures for nonprofit organizations globally.

Comprehend the impact of political events on the development and expansion of nonprofit organizations.

Recognize the role and impact of international nongovernmental organizations (INGOs) in global economic and social development.

Identify the challenges and strategies in managing multinational and multicultural nonprofit organizations.

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Definitions:

Common Fate

A principle suggesting that individuals in a group are bound together by the outcome of events, affecting them all similarly.

Experienced Negotiators

Individuals who have a significant amount of expertise and skill in conducting negotiations effectively.

Constituencies

Groups or bodies of voters in a specified area who elect a representative to a legislative body.

Relationships

Connections or associations between individuals or entities based on emotional bonds, interactions, or mutual interests.