Which of the Following Types of Risk Cannot Typically Be

question 13

Multiple Choice

Which of the following types of risk cannot typically be transferred to an insurance company?

• A) Losses due to property damage from storms.
• B) Losses due to on-the job injuries suffered by employees.
• C) Losses due to rising raw materials costs that cannot be passed on to customers.
• D) Losses due to the untimely death of an employee in a key position.

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Definitions:

Indirect Method

An approach used in cash flow statements to reconcile net income with cash flow from operating activities, adjusting for non-cash transactions.

Accumulated Depreciation

The cumulative value of depreciation expense assigned to a physical asset since it was first utilized.

Statement of Cash Flows

A financial statement showing the cash inflows and outflows for a business over a specific period.

Operating Activities

Financial transactions and events related to the core business functions, including revenue and expense activities affecting cash flow.