When a Corporation Insures a Risk, It Is

question 73

Multiple Choice

When a corporation insures a risk, it is:

• A)retaining its risk.
• B)avoiding its risk.
• C)retaining its risk with loss control.
• D)assuming its risk.
• E)transferring its risk.

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Definitions:

Partial

Pertaining to something that is not whole or complete, often used in financial contexts to describe payments, completion of tasks, or fulfillment of obligations that are not entirely settled.

Temporary Difference

A difference between the book value of an asset or liability and its tax value that results in taxable or deductible amounts in future years.

Pretax Financial Income

Pretax Financial Income is the amount of income earned by a company before taxes are deducted, as reported in its financial statements.