Morton Is Discussing with His Insurance Agent the Possibility That

question 126

Multiple Choice

Morton is discussing with his insurance agent the possibility that he might lose his building and equipment in the event of a fire or windstorm.Should that happen,Morton's company would not be able to earn revenues.These two people are discussing

• A)risk.
• B)pure risk.
• C)business risk.
• D)market risk.

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Definitions:

Cost-Of-Living Adjustments

Wage or salary increases based on changes in the cost of living, ensuring purchasing power is maintained.

Performance Measures

Metrics or indicators used to assess the effectiveness, quality, and efficiency of an individual's or organization's work.

Profit-Sharing

A company policy of sharing a portion of its profits with employees, usually in addition to their normal salaries or wages.

Gain Sharing

A performance-related pay plan that gives employees incentives based on improvements in company performance, such as increased productivity or profitability.