When the Size of the Potential Loss Is Small, Most

question 20

Multiple Choice

When the size of the potential loss is small, most people will

• A)insure because insurance costs less than the expected loss.
• B)self-insure because they can afford it and the expected loss less than the insurance premium.
• C)self-insure because the expected loss cannot be calculated.
• D)self-insure because insurance companies do not like to insure for small losses.

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Definitions:

Trait Approach

The perspective in leadership research that leaders possess inherent qualities or attributes distinguishing them from non-leaders.

Traits

Inherent characteristics or qualities that influence an individual's behavior and can affect their ability to lead.

Situational Factors

Elements that influence the effectiveness of a particular leadership style or management approach, depending on the context or environment.

Charisma

A personal quality that gives an individual influence or authority over large numbers of people, often associated with captivating and compelling leaders.