Many People Do Not Fully Insure Against Risk Because

question 50

Multiple Choice

Many people do not fully insure against risk because

• A) they are risk averse.
• B) the insurance companies are all crooks.
• C) the insurance offered is less than fair.
• D) the insurance offered is more than fair.

---

Definitions:

Fees Earned

Income received from providing services.

Wages Expense

The total cost incurred by a business for the payment of wages to employees for a specific period.

Proprietorship

A proprietorship, also known as a sole proprietorship, is a type of business that is owned and run by one individual and where there is no legal distinction between the owner and the business entity.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, to be settled over time through the transfer of economic benefits including money, goods, or services.