Going Bare Is a Much Less Risky Strategy for Self-Insurance

question 25

True/False

Going bare is a much less risky strategy for self-insurance.

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Definitions:

Relative Ease

The level of simplicity or difficulty with which a task can be completed when compared to other tasks.

Formation

The process of legally creating a company or other organization; involves registration with relevant authorities and may include drafting a constitution or by-laws.

Corporation

A legal entity recognized by law as distinct from its owners that can own property, incur debts, sue, or be sued.

Partnership Income

The share of earnings distributed to the partners of a business, reflecting their individual stakes in the partnership’s profits.