AutoPROs Recalled Thousands of Tires When Several People Died in Traffic

question 50

Multiple Choice

AutoPROs recalled thousands of tires when several people died in traffic accidents blamed on faulty tires. This is an example of which of the following?

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

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Definitions:

Initial Deposit

The first amount of money placed into an account or investment, serving as the starting balance from which future transactions are measured.

No Further Deposits

A restriction placed on a bank account or investment that prevents additional funds from being added.

Compounded Annually

A method of calculating interest where the amount earned is added to the principal at the end of each year, so that the interest for the next year is calculated on the increased principal.

Interest

The charge for borrowing money or the return on investment for funds on deposit, expressed as a percentage of the principal.