Which of the Following Is a True Statement

question 15

Multiple Choice

Which of the following is a true statement?

• A) Liability risks are risks associated with building calamities.
• B) Theft is a diversifiable risk.
• C) Most individuals in the industrialized countries carry no insurance.
• D) The Law of Large Numbers is used in Risk Pooling.

---

Definitions:

Inventory Holding Costs

Expenses associated with storing and maintaining unsold goods, including warehousing, insurance, and depreciation.

Obsolescence Cost

Costs incurred due to inventory or assets becoming outdated or no longer useful.

Multiechelon Supply Chain

A complex supply chain structure involving multiple levels of suppliers, manufacturers, and distribution centers.

Integer Rule

A mathematical principle that states solutions to certain problems must be whole numbers, commonly applied in optimization and scheduling.