In Risk Management, the Distinction Between Real and Personal Property

question 46

Multiple Choice

In risk management, the distinction between real and personal property is relevant because:

• A)when compared to real property, personal property is highly valued.
• B)real property is a non-depreciating property, whereas, personal property depreciates.
• C)dissimilar properties are exposed to perils with dissimilar likelihoods.
• D)insureds would be more concerned about loosing, or being compensated for, personal property than real property.
• E)risks exposures associated with personal property are not insured.

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Definitions:

Flake Tools

Prehistoric stone tools created by chipping or flaking off pieces from a larger stone, used by early humans for cutting and scraping.

Homo Erectus

An extinct species of early human that lived throughout Africa, Asia, and Europe between approximately 1.9 million and 143,000 years ago, known for its upright posture.

Toolmakers

Beings (often humans) who create, modify, or use tools, enhancing their ability to interact with and manipulate their environment.