Which of the following statements about risk assumption is not correct? A) Risk assumption is also known as risk retention. B) Risk assumption can be transferred through hedging. C) Larger firms have a better ability to assume risk. D) All of the above are correct.

Question

Quizplus · Accepted Answer

Risk assumption is the act of taking on the risk and accepting the potential loss without any protection or transfer to a third party. Therefore, option B is not correct as risk assumption cannot be transferred through hedging. Options A and C are correct statements.

Which of the Following Statements About Risk Assumption Is Not