(Consider This) Which of the Following Statements About Insurance and Risk

question 243

Multiple Choice

(Consider This) Which of the following statements about insurance and risk is true?

• A) Insurance inhibits economic growth and investment by discouraging risk-taking.
• B) Insurance transfers risk from those with a high tolerance for risk to those with a low tolerance for risk.
• C) Insurance companies always earn profits because insurance premiums always exceed the payout for insured events.
• D) Insurance transfers risk from those with a low tolerance for risk to those with a higher tolerance for risk.

Understand the differentiation between intraorganizational and interorganizational systems.

Identify the roles of various IT systems in processing business transactions.

Understand the application of algorithms and data in decision-making within organizations.

Understand the concept of favorable and unfavorable variances in revenue and cost management.

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Definitions:

Tardiness

The habit of being late or delayed beyond the expected or scheduled time.

Cognitive Skills

Mental abilities or skills required for learning, thinking, reasoning, problem-solving, and understanding.

Attain Goals

Attaining goals refers to the successful achievement or realization of set objectives, typically through planned strategies, effort, and persistence.

Direct Effects

The immediate impact of one variable on another, without the influence of intervening variables.