Respuesta :
The answer is : A. insurance
When you buy an insurance, the insurance company is bidden by a contract that make them legally obligated to pay for all the financial loss that you suffer through a certain type of clause/event, as long as the cause/event happen within the period of time that you both agreed on (the cause could include things such as loss from natural disasters, employees accidents, etc)
In return, you would have to pay a certain amount of money to the insurance regularly during the agreed time period. You would not get your money back if the clause/event does not happen
The correct answer is (A).
Insurance is something, a company may transfer risk to another firm.
Further Explanation:
Insurance company:
The insurance company is a company which pays a certain amount to a company for paying a regular fee by the company according to the insurance company’s’ policy and that amount is known as a premium. The insurance company is an insurer who insures the company if any uncertainty arises like accident, loss by fire, and many more. The insurance company pays all the financial loss which has to be face by the insured person. The insurance companies assure the insured person, and take the responsibility of the insured person or the insured object.
In case, if the uncertainty does not arise, then the amount given as an insurance fee amount will not be refunded as per the terms and conditions of the insurance company.
Justification for the correct and incorrect answer:
A:
Insurance: This option is correct.
The insurance company is a way in which a company can transfer its risk to the other company by the loss to the object or the person, the products’ company does not have to bear the loss. The insurance company has to bear the loss of the insured product.
B:
Risk avoidance: This option is incorrect.
The risk avoidance does not transfer the risk to other company. Risk avoidance will avoid the risk.
C:
Risk control: This option is incorrect.
The risk control will not transfer the risk. It will only control the risk or in simple words, it will be tried to manage the risk.
D:
Investing: This option is incorrect.
The investing does not transfer the risk. In investing, money or something is invested in the particular thing.
Therefore, insurance company is a way in which a company can transfer its risk to the other company.
Learn More:
1. Risk-free rate
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2. Stock portfolio
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3. Bankruptcy
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Answer Details:
Grade: High school
Chapter: Risk
Subject: Business studies
Keywords:
How may a company transfer risk to another firm, insurance, risk avoidance, risk control, investing.
