Day: November 29, 2024

Alex Ltd is renewing its buildings and contents insurance policy covering its eight Staffordshire factories.

In terms of risk management, this is an example of?

Select ONE answer:

1. Risk avoidance
2. Risk reduction
3. Risk transfer
4. Risk retention

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > Insurance transfers risk. In return for an insurance premium, the insurance company agrees to take on an agreed proportion of the financial burden of a risk for Alex Ltd.
4. Not correct

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