Which of the Following Is a Motive for Using Insurance

question 44

Multiple Choice

Which of the following is a motive for using insurance to manage risk?

• A) Premiums, no matter how high, are consistent and easy to budget.
• B) The firm intends to make money from the insurance company if a specified loss happens.
• C) The firm does not want to be concerned with small, inconsequential losses and chooses to have the insurance company handle them.
• D) Insurance can provide protection against events that can cause financial distress.

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Definitions:

In Vitro Fertilization

A medical procedure in which an egg is fertilized by sperm outside the body, in a laboratory setting.

Petri Dish

A shallow cylindrical glass or plastic lidded dish that biologists use to culture cells or small organisms.

Embryos

Early stages of development for multicellular organisms following fertilization and before birth or hatching.

Vitro Fertilization

A medical procedure in which an egg is fertilized by sperm outside the body, commonly referred to as IVF, and then the embryo is implanted in the uterus.