The Idea of Insurance

question 31

Multiple Choice

The idea of insurance

• A)would not appeal to a risk-averse person.
• B)is,other things the same,to reduce the probability of a fire,accident,or death.
• C)is to share risk.
• D)is to provide a sure thing,not a gamble.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Average Sale Period

The average time it takes for a company to complete a sales cycle from initial contact to closing the sale.

Sales On Account

Transactions where goods are sold and delivered, but payment is delayed according to agreed terms instead of being made at the time of sale.

Cost Of Goods Sold

Direct costs associated with the assembly of products a company offers for sale, including labor and materials.