Which of the Following Risks Would Be the Best Candidate

question 4

Multiple Choice

Which of the following risks would be the best candidate for self insurance?

• A)Potential malpractice suits for a five-doctor surgery group.
• B)Fire insurance for a business that operates three restaurants.
• C)Life insurance on the partners of a three-lawyer law firm.If one of the partners dies, the other two will need to buy her share of the business.
• D)A large parcel delivery company sustains occasional damage to its vehicles.

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Definitions:

Common Stock

Refers to shares that represent ownership in a corporation, providing voting rights and dividends, but with no fixed dividend rate.

Shares Outstanding

The total number of a company's shares that are currently owned by shareholders, including restricted shares.

Reacquired

Refers to assets or shares that a company buys back from investors or shareholders.

Par Common Stock

The nominal or face value assigned to common stock shares in the articles of incorporation.