Whether a potential loss is "small" or "large" depends on the
A) size of the insurance deductible.
B) strength of a company's financial position.
C) dependability of a company's cash flows.
D) level of risk retention the company can handle.

Question

Quizplus · Accepted Answer

The strength of a company's financial position is a key factor in determining whether a potential loss is "small" or "large". A company with a strong financial position will be better able to absorb a loss than a company with a weak financial position.

Whether a Potential Loss Is "Small" or "Large" Depends on the