If You Choose to Insure Your Home or Your Vehicle

question 34

Multiple Choice

If you choose to insure your home or your vehicle, you are using

• A) Risk avoidance.
• B) Risk reduction.
• C) Risk assumption.
• D) Risk shifting.
• E) Risk increasing.

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Definitions:

Open Offer

An invitation to all shareholders to purchase additional shares in the company, typically at a discount, and not limited to a specific number of shareholders.

Reasonable Intent

A legal standard assessing what a person of ordinary intelligence and prudence would intend under certain circumstances.

Blue Book Value

An estimated value of a vehicle, derived from a standard guide or reference, used largely in the used car market for valuation purposes.

Offeree

The person to whom an offer is made, who has the power to accept the offer, thus forming a binding contract.