[amp_mcq option1=”Risk retention would mean absence of possibility of loss or damage” option2=”The event of loss is insignificant” option3=”Assets are covered by insurance” option4=”The owner of assets is prepared to accept the uninsured risks and its effects” correct=”option4″]<\/p>\n
The correct answer is D. The owner of assets is prepared to accept the uninsured risks and its effects.<\/p>\n
Risk retention is the decision to keep a risk rather than transfer it to another party. This can be done by self-insuring, which means setting aside money to cover potential losses, or by simply accepting the possibility of loss.<\/p>\n
Risk retention can be a good option for businesses that are able to absorb the costs of losses without going out of business. It can also be a good option for businesses that are willing to take on more risk in order to achieve higher returns.<\/p>\n
However, risk retention can also be a risky strategy. If a business experiences a large loss, it could be forced to close down. It is important for businesses to carefully consider the risks and benefits of risk retention before making a decision.<\/p>\n
Option A is incorrect because risk retention does not mean that there is no possibility of loss or damage. In fact, risk retention means that the owner of the assets is accepting the risk of loss or damage.<\/p>\n
Option B is incorrect because the event of loss is not always insignificant. In some cases, the event of loss can be very significant and can have a major impact on the owner of the assets.<\/p>\n
Option C is incorrect because assets are not always covered by insurance. In some cases, the owner of the assets may choose not to purchase insurance or may be unable to obtain insurance.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Risk retention would mean absence of possibility of loss or damage” option2=”The event of loss is insignificant” option3=”Assets are covered by insurance” option4=”The owner of assets is prepared to accept the uninsured risks and its effects” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[],"class_list":["post-32339","post","type-post","status-publish","format-standard","hentry","category-insurance","no-featured-image-padding"],"yoast_head":"\n