Vidyalelo
Commerce · Q698

Insurance

Graduate and Post Graduate · Commerce · question 698

Q698

Risk Financing includes -

A.
Risk Retention
B.
Risk Transfer
C.
A & B correct
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
In business economics, risk financing is concerned with providing funds to cover the financial effect of unexpected losses experienced by a firm. Traditional forms of finance include risk transfer, funded retention by way of reserves (often called self-insurance) and risk pooling.