Which of the Following Statements About External and Internal Loss-Financing

question 44

Multiple Choice

Which of the following statements about external and internal loss-financing techniques is not correct?

• A) Self-insurance is a form of internal loss-financing.
• B) Risk retention is a form of internal loss-financing.
• C) Insurance is a form of external loss-financing.
• D) Captive insurance is a form of external loss-financing.

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Definitions:

Risk of Illness

The probability or chance that an individual will develop a disease or health condition over a certain period.

Environmental Stressors

External factors or conditions in the environment that can cause stress, such as noise, pollution, or extreme temperatures.

Physiological Reaction

A bodily response to a stimulus, which could be anything from an emotional event to a physical touch.

Cognitive Coping

Strategies that involve the conscious effort to solve personal and interpersonal problems, and seeking to master, minimize, or tolerate stress or conflict.