Sabeka Inc has discovered that one of its products may cause consumers to suffer a certain form of property damage.In response to that risk,the company has written an exclusion clause into its sales contracts.In doing so,it has adopted a form of risk management known as risk shifting.

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By including an exclusion clause in its sales contracts, Sabeka Inc is shifting the risk of potential property damage from itself to its customers, which is a form of risk management known as risk shifting.

Sabeka Inc Has Discovered That One of Its Products May