Author Question: In reviewing his company's operations, a risk manager noticed that all of the company's finished ... (Read 223 times)

bclement10 · **on:** Jul 11, 2018

In reviewing his company's operations, a risk manager noticed that all of the company's finished goods were stored in a single warehouse.

The risk manager recommended that the finished goods be divided among three warehouses to prevent all of the finished goods from being destroyed by the same peril. Dividing the finished goods among three warehouses illustrates
A) duplication.
B) separation.
C) insurance.
D) noninsurance transfer.

Question 2

Barb, who is self-employed, is the main breadwinner for her family. Barb does not have disability income insurance because she has never stopped to consider the impact of a long-term disability upon her family.

Barb's treatment of the risk of disability is best described as
A) risk transfer.
B) passive retention.
C) risk avoidance.
D) active retention.