Which of the Following Is a Consequence of Transferring Risk

question 125

Multiple Choice

Which of the following is a consequence of transferring risk to an insurance company?

• A) An increase in stock value because risk has been reduced.
• B) A guaranteed small loss in exchange for protection against large losses.
• C) Higher rates of return because the firm is now free to pursue high-risk projects.
• D) Protection against losses at no significant cost to the firm.

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Definitions:

Lesbians

Women who feel romantic and sexual attraction towards other women.

Masculine Characteristics

Traits or qualities traditionally considered to be typical of or appropriate for men, such as strength, aggression, and dominance.

Alfred Kinsey

A pioneering American sexologist known for his research on human sexuality and for developing the Kinsey scale.

Heterosexuals

Individuals who are sexually attracted to people of the opposite sex.