The Market for Insurance Is One Example of Reducing Risk

question 73

True/False

The market for insurance is one example of reducing risk by using diversification.

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Definitions:

Dominant Values

The overarching beliefs and principles that are widely accepted and prioritized within a society or organization.

External Adaptation

The process of adjusting or modifying external elements or surroundings to better fit or survive in them.

Group Boundaries

The defined edges or limits of a group that distinguish its members from non-members and help maintain its existing structures and norms.

Measurement

The process of determining the size, length, or amount of something using standard units.