Which of the Following Statements Is Correct

question 72

Multiple Choice

Which of the following statements is correct?

• A)A high-risk person is more likely to apply for insurance than a low-risk person because a high-risk person would benefit more from insurance protection.
• B)A low-risk person is more likely to apply for insurance than a high-risk person because a low-risk person would benefit more from insurance protection.
• C)Insurance companies can fully guard against the problem of adverse selection,but they cannot fully guard against the problem of moral hazard.
• D)Insurance companies can fully guard against the problem of moral hazard,but they cannot fully guard against the problem of adverse selection.

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Definitions:

Organizational Culture

A group of unified values, aspirations, attitudes, and rituals that distinguish an institution or organization.

Ethical Behavior

Conduct that is consistent with principles of morality and rules of proper conduct.

Encourages Ethical

The act of promoting moral principles and values in decision-making processes.

Organization Culture

The set of shared beliefs, values, norms, and practices that characterizes an organization, influencing how employees interact and work.