Which of the Following Is Not Consistent with the Three

question 12

Multiple Choice

Which of the following is not consistent with the three basic rules of risk management?

• A) Transfer high probability/ low loss exposures
• B) Transfer low probability/ high loss exposures
• C) Transfer lows that could be devastating
• D) Consider the cost of the policy versus the benefit of the coverage before making the decision of whether or not to retain, reduce, or transfer risk

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Definitions:

Cost Of Goods Manufactured

The total cost incurred by a company to produce goods within a specific period, including labor, material, and overhead costs.

T-Accounts

A tool used in accounting to represent a general ledger account, summarizing debit and credit transactions.

Cost Of Goods Manufactured

The total cost incurred by a company to produce goods in a certain period, including costs associated with materials, labor, and overhead.

T-Accounts

A graphical representation of a ledger account, used in accounting to show the effects of transactions on individual accounts.