The Purchase of Insurance Is a Common Form of _____

question 73

Multiple Choice

The purchase of insurance is a common form of _____ by the insured.

• A) loss prevention
• B) risk transfer
• C) risk assumption
• D) risk avoidance
• E) loss control

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Definitions:

APS

The abbreviation for "Aggregate Planning Strategy," a process in operations management to balance production and demand over a medium-term horizon; or it could refer to "Automatic Payment System," depending on context.

Income

The financial gain earned by an individual or business, typically measured on an annual basis, coming from work, investments, or other sources.

APC

Average Propensity to Consume, which is the fraction of income that a person or economy spends rather than saving.

APS

The Average Propensity to Save, which is the proportion of total income that households plan to save rather than spend on consumption.