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:

SWOT Analysis

A strategic planning tool that evaluates the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture.

Strengths Only

A focus on utilizing and enhancing an individual's or organization’s existing positive attributes and skills.

Strategy Formulation

The process of developing strategies to achieve organizational goals through analysis, planning, and decision-making.

Value Creation

What the firm adds to a product or service by virtue of making it; the amount of benefits provided by the product or service once the costs of making it are subtracted.