A reasonable business owner should purchase insurance to cover a possible negative event when: A. the risk of the event is high and the impact of the event is low. B. the risk of the event is high and the impact of the event is high. C. the calculated risk value of the event is especially low. D. the risk of the event is low and the impact of the event is low.

Question

Computers & Technology

Elisha Copeland

13 July, 12:09

A reasonable business owner should purchase insurance to cover a possible negative event when: A. the risk of the event is high and the impact of the event is low. B. the risk of the event is high and the impact of the event is high. C. the calculated risk value of the event is especially low. D. the risk of the event is low and the impact of the event is low.

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Answers (1)

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Ava Powers · Answer 1

B) the risk of the event is high and the impact of the event is high.

Explanation:

The whole idea of purchasing insurance is to reduce risk, but you should only purchase insurance to cover the risk of events that could occur and can cause severe damages, e. g. a business owner in southern Florida might purchase insurance that protects them from Hurricane damage.