Whitewater Rapids Provides Canoes to Tourists Eager to Ride Whitewater

question 68

Multiple Choice

Whitewater Rapids provides canoes to tourists eager to ride Whitewater River's rapids.Management has determined that there is one chance in a thousand of a customer being injured or killed.Settlement of resulting lawsuits has an average cost of $850,000.Insurance with a $100,000 deductible is available.It covers the costs of lawsuits,unless there is evidence of criminal negligence.What is the impact of this risk without insurance?

• A)$10
• B)$850
• C)$100,000
• D)$850,000

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Definitions:

Deceptive And Manipulative Practices

Actions deliberately intended to mislead or trick others, often for personal or financial gain and at the expense of others.

Securities Regulation

Laws and regulations governing the issuance, trading, and enforcement of rights associated with financial instruments like stocks and bonds.

Securities Act

A law governing the issue and sale of securities to protect investors through requiring disclosures via registration of securities.

Public Securities

Financial instruments, such as stocks or bonds, that are traded openly in the public markets.