Simon Owns Several Gas Stations

question 119

Multiple Choice

Simon owns several gas stations. He realizes that among the several risks associated with this type of business is the risk of minor damage to cars from dirty or contaminated fuel. He also knows that there is a small chance of a major loss if a fire occurred at one of his gas stations. Simon wants to control his insurance costs while still maintaining a reasonable risk management program. He is considering self-insurance. If he decides to use this approach, he will probably

• A) rely entirely on a strategy of risk avoidance.
• B) decide to cover both types of risk himself.
• C) decide to self-insure for the smaller, more routine, losses associated with the damage caused by dirty or contaminated fuel, but seek coverage from an insurance company for the potentially much larger loss from a fire.
• D) decide to cover the risk of fire himself, and take out an insurance policy to cover the risk of contaminated fuel.

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Definitions:

DNA Polymerase

A catalyst that constructs DNA strands using deoxyribonucleotides as the foundational components of DNA.

DNA Ligase

Enzyme that catalyzes the joining of the 5′ and 3′ ends of two DNA fragments; essential in DNA replication and used in recombinant DNA technology.

Excision Repair Enzymes

A class of enzymes involved in the repair of DNA by recognizing and removing damaged or mismatched nucleotides, followed by filling in the correct sequences.

UV Rays

Short-wavelength ultraviolet radiation that is not visible to the human eye, capable of causing skin burns, eye damage, and other health issues.