Which of the Following Statements About the Exposure Units and Risk

question 55

Multiple Choice

Which of the following statements about the exposure units and risk pooling is not correct?

• A) Exposure units should not be exposed to risk in order to be added to the risk pool.
• B) Risk pooling is the ability to reduce the risk of an exposure unit by creating more homogenous pool of units.
• C) Risk pooling works best if the number of exposure units is small.
• D) Risk pooling is the ability to reduce the risk of an exposure unit by making more accurate predictions about a large pool of units.

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Definitions:

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire, motivate, and foster enthusiasm among followers through personal charm and persuasive communication.

Follower Satisfaction

Refers to the degree to which followers or subordinates feel fulfilled and content with their leadership and organizational environment.

Leadership Effectiveness

The extent to which a leader is able to achieve desired results or outcomes through the direction, influence, and control of organizational resources.

Charisma

A quality of individuals that inspires devotion or attraction, marked by a strong personal magnetism and communication skills.