_____ is the choice to accept and bear the risk of loss.
A) Loss assumption
B) Risk assumption
C) Risk avoidance
D) Loss avoidance
E) Risk sharing

Question

Quizplus · Accepted Answer

Risk assumption refers to the choice to accept and bear the risk of loss. It means that an individual or organization chooses to take on the potential risks involved in a particular activity or venture. This can be a calculated decision based on the perceived benefits outweighing the potential losses. It is different from risk avoidance, which involves actively avoiding or minimizing potential risks. Loss assumption and loss avoidance are not accurate choices for this definition, and risk sharing implies the distribution of risk among multiple parties rather than a single entity taking it on.

_____ Is the Choice to Accept and Bear the Risk