Question: Define (a) Risk avoidance (b) Loss prevention (c) Loss control (d) Risk assumption (e) An insurance policy. Explain their interrelationships.

Define
(a) Risk avoidance
(b) Loss prevention
(c) Loss control
(d) Risk assumption
(e) An insurance policy.
Explain their interrelationships.

Step by Step Solution

★★★★★

3.29 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Risk avoidance involves avoiding the act that creates the risk It is an attractive way to deal wit... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

406-B-C-F-F-P-M (894).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Q:

Define control risk and explain the role of control risk assessment in audit planning.

Q:

Risk avoidance is an appropriate strategy when the potential losses seriously outweigh the likely benefits. What factors should be considered on the cost and benefit sides of the analysis? At what...

Q:

Define appraisal costs and explain how they relate to prevention costs.

Q:

Define (a) risk avoidance, (b) loss prevention, (c) loss control, (d) risk assumption, and (e) an insurance policy. Explain their interrelationships.

Q:

What are the key provisions of the ACA? How is it likely to affect your health care insurance? List and briefly discuss the five major reasons for borrowing money through a consumer loan. Define (a)...

Q:

Part 2 - Problem Solving: 1. Yomna wishes to open a new pharmacy, however she is worriod that the customers may suffer side effects (issues) from the medication and sue her (take her to court)....

Q:

20. The probability of a loss occurring can be reduced by a. risk observance b. loss prevention c. risk assumption d risk retention e. insurance 21. Underwriting is : a. selling insurance at a...

Q:

Due Date: 11:59 pm EST Sunday of Unit 1 Points: 100 Overview: Students will compare the historical definition of risk, the traditional types of risks and loss exposure. Students will also assess the...

Q:

1. Explain each of the following characteristics of a typical insurance plan. a. Pooling of losses b. Payment of fortuitous losses c. Risk transfer d. Indemnification 2. Explain the law of large...

Q:

11. Briefly explain each of the following risk control techniques for risk management: a. Avoidance b. Loss prevention c. Loss reduction d. Duplication e. Separation f. Diversification 12. Briefly...

Q:

For a distribution in which X = 100, SX = 16, and N = 500: (a) What is the relative frequency of scores between 76 and the mean? (b) How many participants are expected to score between 76 and the...

Q:

Prove that the curves Ek = {Tk x | ||x|| = 1}, k = 0, 1,2,..., sketched in Figure 10.2 form a family of ellipses with the same principal axes. What are the semi-axes? Use Exercise 8.5.19.

Q:

over a certain perond, large company stocks had an average return of 1 2 . 6 4 percent, the average risk - free rate was 2 . 5 9

Q:

Prove the following proposition: Free trade is better than no trade.

Q:

1. Calculate Cheryl Sterns taxable income, being sure to consider her exemption. Assume that the standard deduction for a single taxpayer is $5,800, and that each exemption claimed is worth $3,700....

Q:

1. Using the Kapoors information, determine the total amount of their itemized deductions. Assume that theyll use the filing status of married filing jointly, the standard deduction for that status...

Q:

What is cash management, and what are its major functions?

Q:

What does the highest point in the frequency polygon show? A- it shows where most of the participants are clustered B- it shows where the least of the participants are clustered C-it shows where the...

Q:

open this Microsoft Word document. Using your knowledge of effective writing and the tips on page 147 for evaluating the work of other writers, evaluate this message. After you set Microsoft Word to...

Q:

Assessed Exercises Sheet 1 Al.1. Use the substitution x = a sinh u to work out the integral (a? + 12)1/2 dec. [4] A1.2. (i) Show that the Laplace transform of f(x) = x is 2. (ii) Show by induction...