Dave and Darla are worried about their home's security as there have been a lot of robberies in the neighborhood lately. To ease their concern, they purchase insurance for their home and possessions. This is an example of __________.
A) risk analysis
B) risk acceptance
C) risk transference
D) controls

Question

Quizplus · Accepted Answer

Purchasing insurance for their home and possessions is an example of risk transference. This means they are transferring the financial risk associated with potential robberies to the insurance company.

Dave and Darla Are Worried About Their Home's Security as There