The Following Paragraph Contains an Incomplete Statement

question 81

Multiple Choice

The following paragraph contains an incomplete statement. Select the answer choice containing the term that correctly completes the statement. Health plans face four contingency risks (C-risks) : asset risk (C-1) , pricing risk (C-2) , interest-rate risk (C-3) , and general management risk (C-4) . Of these risks, ________________ is typically the most important risk that health plans face. This is true because a sizable portion of the total expenses and liabilities faced by a health plan come from contractual obligations to pay for future medical costs, and the exact amount of these costs is not known when the healthcare coverage is priced.

• A) Asset risk (C-1)
• B) Pricing risk (C-2)
• C) Interest-rate risk (C-3)
• D) General management risk (C-4)

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Definitions:

Participative Behaviors

Practices where leaders involve followers in the decision-making process, enhancing engagement, empowerment, and collective responsibility.

Decision-Making Process

The systematic approach to making choices among various alternatives, based on factors such as evidence, preferences, and consequences.

Path-Goal Theory

A leadership theory that suggests a leader's effectiveness is defined by their ability to clear paths for followers to achieve goals, adjusting leadership styles based on situational needs.

Practical Nature

Refers to an approach or methodology that is grounded in real-world applications and effectiveness rather than theoretical or abstract concepts.