In General,the Presence of Insurance Against the Negative Outcome of an Event

question 133

Multiple Choice

In general,the presence of insurance against the negative outcome of an event (e.g. ,fire insurance) tends to

• A)lessen the likelihood of the event.
• B)have no effect on the likelihood of the event.
• C)increase the incentive to prevent the event.
• D)decrease the incentive to prevent the event.

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Definitions:

Franchisees

Individuals or entities that acquire the rights to operate a business under a franchisor's brand and system.

Franchisors

Companies or individuals that grant licenses to third parties to conduct business under their trademark and business model.

International Franchise

A business model where a company allows an individual or other business to operate a franchise in a foreign country using its brand, trademark, and products.

Fast Food Chain

A series of restaurants serving quick-service food items, standardized across locations for consistency and speed.