What does purchasing insurance for a business reveal about the business owner's attitude toward financial risk?

A It shows that the owner expects financial risk and is eliminating it by making an insurance company liable.

B It shows that the owner is accepting financial risk by budgeting for it and paying for it regularly.

C It shows that the owner is willing to share ownership of the business to reduce financial risk.

D It shows that the owner is willing to budget for short-term financial risks to avoid long-term risks.

Question

Glenn Key

Business

12 February, 01:04

What does purchasing insurance for a business reveal about the business owner's attitude toward financial risk?

A It shows that the owner expects financial risk and is eliminating it by making an insurance company liable.

B It shows that the owner is accepting financial risk by budgeting for it and paying for it regularly.

C It shows that the owner is willing to share ownership of the business to reduce financial risk.

D It shows that the owner is willing to budget for short-term financial risks to avoid long-term risks.

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Answers (1)

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Aditya Melton · Answer 1

The one that purchasing insurance for a business reveal about the business owner's attitude toward financial risk is:

B. it shows that the owner is accepting financial risk by budgeting for it and paying for it regularly.

For example, if his business is located in an area that has high chance of flooding, he accept it as a risk and pay a sum of money for insurance to cover it in case it happen