Which of the Following Is Correct

question 24

Multiple Choice

Which of the following is correct?

• A) The best risk management plan is one that does not change throughout one's life.
• B) Once a plan is set up, it should be reviewed every 10 years.
• C) A solid risk management plan works well without insurance as a component.
• D) One question that should be asked when developing a risk management plan is "What do I need to insure?"
• E) The main goal of insurance should be to maximize personal, property, and liability risks.

---

Definitions:

Assets

Resources owned or controlled by a business that are expected to produce economic benefits.

Liabilities

Financial obligations or debts owed by a company to external parties or individuals, expected to be settled through the outflow of resources.

Materiality

An accounting principle that means the significance of financial information to decision makers, considering its size or its nature.

Relevance

The importance of financial information in making economic decisions, ensuring that the data presented affects the users' understanding and actions.