The Probability of a Loss Occurring Can Be Reduced By

question 92

Multiple Choice

The probability of a loss occurring can be reduced by:

• A) risk observance.
• B) loss prevention.
• C) risk assumption.
• D) loss retention.
• E) insurance.

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Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders in a company.

Ending Capital Balance

Ending capital balance is the amount of money a company has in its capital account at the end of a financial period after all financial transactions have been accounted for.

Beginning Capital Balance

The amount of capital at the start of a financial period before any transactions have been accounted for during the period.

Withdrawals

Money or assets taken out from a business by its owner for personal use or from a bank account by the account holder.