Finance

All of the following statements about avoidance are true EXCEPT A) Ce

All of the following statements about avoidance are true EXCEPT A) Certain loss exposures are never acquired. B) Certain loss exposures may be abandoned. C) The chance of loss for certain loss exposures may be reduced to zero. D) It can be used for any loss exposure facing a firm.     ANSWER Answer: D

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Date: September 19th, 2020

A discount store chain is concerned that cashiers might steal money fr

A discount store chain is concerned that cashiers might steal money from cash registers. To provide protection against theft by the cashiers, the discount store chain can purchase a A) fidelity bond. B) liability insurance policy. C) surety bond. D) business income insurance policy.     ANSWER Answer: A

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Date: September 19th, 2020

BBB Auto Club provides emergency road service and other services to it

BBB Auto Club provides emergency road service and other services to its members. BBB Auto Club charges a higher membership fee to new members than it charges to members who are renewing their membership. When asked to explain this pricing policy, the auto club president noted, “New members often sign-up prior to taking a long […]

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Date: September 19th, 2020

Loss frequency is defined as the A) probable size of the losses that

Loss frequency is defined as the A) probable size of the losses that may occur during some period. B) probable number of losses that may occur during some period. C) probability that any particular piece of property may be totally destroyed. D) probability that a liability judgment may exceed a firm’s net worth.     […]

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Date: September 19th, 2020

Loss severity is defined as the A) probable size of the losses which

Loss severity is defined as the A) probable size of the losses which may occur during some period. B) probable number of losses which may occur during some period. C) probability that any particular piece of property may be totally destroyed. D) probability that a liability judgment may exceed a firm’s net worth.     […]

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Date: September 19th, 2020