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:

Partnership

A legally structured business partnership that involves multiple individuals co-managing and sharing the earnings.

Dissolution

refers to the legal termination of a business entity or partnership, effectively ending its existence or operations.

Partnership

An agreement between two or more parties to manage and operate a business together and share its profits or losses.

Winding-Up Stage

The process of concluding a company's business activities, settling debts, and distributing remaining assets to shareholders.