To Protect the Firm Against the Loss of Earnings If

question 19

Multiple Choice

To protect the firm against the loss of earnings if the business operations are disrupted due to fire,accident,or some other insured peril,a firm would purchase:

• A)property insurance.
• B)key personnel insurance.
• C)business liability insurance.
• D)business interruption insurance.

---

Definitions:

Risk-averse

Referring to the preference of minimizing exposure to risk and avoiding situations that could lead to loss.

World Events

Significant occurrences and developments worldwide that can impact global markets, politics, and societies.

CAPM

Capital Asset Pricing Model, a framework used to determine the theoretical expected return of an asset or portfolio, taking into account its risk relative to the overall market.

Expected Return

The anticipated profit or loss from an investment, taking into account the probability of varying outcomes.