Which of the Following Is an Example of Risk Retention

question 9

Multiple Choice

Which of the following is an example of risk retention?

• A)Not driving an automobile to avoid having an accident
• B)Wearing a safety belt when driving
• C)Purchasing auto insurance
• D)Having a $200 deductible clause on your auto insurance policy

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Definitions:

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single economic entity.

Voting Shares

Shares of a corporation's stock that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, and cash flows of a parent company and its subsidiaries as one single entity.

Voting Stock

Shares that give the holder the right to vote on company matters, such as electing the board of directors.