Which of the Following Represents an Uninsurable Risk to a Business

question 69

Multiple Choice

Which of the following represents an uninsurable risk to a business firm?

• A) The possibility that its warehouse will burn down.
• B) The possibility that several of its workers will be injured at work.
• C) The possibility that an adverse change in consumer tastes will decrease the demand for the firm's product.
• D) The possibility that a tornado will damage the plant and stop production for a month.

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Definitions:

Mitigate

Mitigate means to make less severe, serious, or painful; in legal and business contexts, it often refers to actions taken to reduce risks or minimize the impact of damages.

Damage

A monetary compensation that a party is legally obligated to pay to another as a result of loss or injury.

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Discharge

The release or dismissal of a particular obligation, debt, or accusation, often legally sanctioned.