Risk-Financing Methods Quiz
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Questions and Answers

Which risk-financing method allows an organization to share its risks with other companies?

  • Risk pooling (correct)
  • Captives
  • Reinsurance
  • Self-insurance
  • Which risk-financing method typically increases the liquidity required by an organization?

  • Captives (correct)
  • Reinsurance
  • Self-insurance
  • Risk pooling
  • Which risk-financing method involves transferring risks to an external insurance company?

  • Captives
  • Self-insurance
  • Reinsurance (correct)
  • Risk pooling
  • Which risk-financing method allows an organization to retain all the risks it faces?

    <p>Self-insurance</p> Signup and view all the answers

    Which risk-financing method involves spreading the risks among a group of organizations?

    <p>Risk pooling</p> Signup and view all the answers

    Which risk-financing method typically requires an organization to pay premiums to an external insurance company?

    <p>Reinsurance</p> Signup and view all the answers

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