Some Businesses Will Set Aside Money to Cover Routine Losses

question 35

Multiple Choice

Some businesses will set aside money to cover routine losses and buy "catastrophe" policies to cover big losses. This is an example of which of the following?

• A) avoiding the risk
• B) self-insuring against the risk
• C) reducing the risk
• D) loss-prevention program

---

Definitions:

Biased Attitudes

Prejudiced opinions or inclinations that are often unreasoned and favor one side or outcome over others without fair justification.

Experiential Process

Learning through direct experience or doing, characterized by exploration and active participation.

Cognitive Control

The ability of the mind to regulate its own processes in directing attention, making decisions, and inhibiting unwanted behaviors or thoughts.

Electrical Signals

Impulses used for communication within organisms, particularly in the nervous system and muscles.