Answers
Appropriate response: (A)
Justification: "Self-insurance is a situation in which a business does not take out any third-party insurance. In case of such business, that is liable for some risk, chooses to bear the risk itself rather than take out insurance through an insurance company."
Therefore, in a case where self-insurance would not make sense, is when the company chooses not to bear the risk by itself, rather to outsource it.
As in the case of option (A), the company has low cash levels, therefore, it would be wise for the company to take a third-party insurance, so that in case of risk liability, it does not have to bear the expense.
Thus, it is not a situation where self-insurance would make sense.
Ruling out of other options:
(B): As the potential for simultaneous destruction is low, it would make sense for the company for to opt for self-insurance. Therefore, it is not the right answer.
(C): As the company has good data on the past loss experience, it can make provisions for potential losses and can be prepared to bear the loss. Thus, it can be self-insured. Therefore, it is not the right answer.
Similar Solved Questions
1 answer
For the following hypothesis test, determine the null and alternative hypotheses. Also, classify the hypothesis test...
For the following hypothesis test, determine the null and alternative hypotheses. Also, classify the hypothesis test as two tailed, left tailed, or right tailed The mean local monthly bill for cell phone users in this country was $43.56 in 2001. A hypothesis test is to be performed to determine whet...
1 answer
(Assume the pully and string are massless and there is no friction present.) Determine the acceleration...
(Assume the pully and string are massless and there is no friction present.) Determine the acceleration of the 5 kg block? Draw a free body diagram, label and define all forces....
1 answer
There are two independent Bernoulli random variables, U and V , both with probability of success...
There are two independent Bernoulli random variables, U and V , both with probability of success 1/2. Let X=U+V and Y =|U−V|. 1) Calculate the covariance of X and Y 2) Explain whether X and Y are independent or not 3) Identify the random variable expressed as the conditional expectation of Y g...
1 answer
A line segment with endpoints at #(-1 , 2 )# and #(-4, 1 )# is rotated clockwise by #pi #. What are the new endpoints of the line segment?
A line segment with endpoints at #(-1 , 2 )# and #(-4, 1 )# is rotated clockwise by #pi #. What are the new endpoints of the line segment?...
1 answer
How would you mitigate risk for purchases, payroll, and fixed assets? Describe a possible internal control...
How would you mitigate risk for purchases, payroll, and fixed assets? Describe a possible internal control plan for purchases and fixed assets....
1 answer
Menc e ctivity do locatorigament taket AssignmentSessionLocator assignment take References A mixture of CuSO, and CuSO,...
menc e ctivity do locatorigament taket AssignmentSessionLocator assignment take References A mixture of CuSO, and CuSO, 5 H, has a mass of 1.215 g. After heating to drive off all the water, the mass is only 0.901 g. What is the mass percent of Cuso, Mass percent H,O is the mine?...
1 answer
Please show work. Jeremy earned $100,000 in salary and $6,000 in interest income during the year....
Please show work. Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head...
1 answer
1. Starting with benzene and any necessary reagents, design an efficient synthesis of the following compound:...
1. Starting with benzene and any necessary reagents, design an efficient synthesis of the following compound: 1. Provide a detailed curved-arrow mechanism to account for the transformation below and explain why the only products formed at high and low temperatures are the ones shown. (Show all reson...
1 answer
Why are standards of care required for health care professionals and organizations? Explain. Do you believe...
Why are standards of care required for health care professionals and organizations? Explain. Do you believe the standards are adequate? Why or why not?...
1 answer
Show all steps Solve the following I VP x":]xof]
show all steps Solve the following I VP x":]xof]...
1 answer
6. Which of the following alkyl halides would afford the indicated product upon reaction with sodium...
6. Which of the following alkyl halides would afford the indicated product upon reaction with sodium ethoxide? Khat K A. B. II C. III D. IV 7. Predict the product of the following reaction: H2Cro4 (excess) de bygge ! A.1 B. II C. III D. IV E. V 8. Predict the product for the following reaction: HOOH...
1 answer
Please help me analyze this spectroscopy question MF: CuHieO nl H-NMR 1C-NMR 40 180 160 120...
please help me analyze this spectroscopy question MF: CuHieO nl H-NMR 1C-NMR 40 180 160 120 100 80 60 20 140 200 pm Cos-e5-992 DISONL...
1 answer
How do I solve for 0º ≤ x < 360º using this equation 2 cos² x + 3 cos x -2 = 0 ?
How do I solve for 0º ≤ x < 360º using this equation 2 cos² x + 3 cos x -2 = 0 ?...
1 answer
2. what is capitalism and did it exist in asia before western imperalist powers intruded into...
2. what is capitalism and did it exist in asia before western imperalist powers intruded into asia...
1 answer
Why are Bacillus cereus and Clostridium perfringes problematic in terms of causative agents of foodborne illness?
Why are Bacillus cereus and Clostridium perfringes problematic in terms of causative agents of foodborne illness?...
1 answer
Asap,, You are given a spherical mirror and wish to determine its properties. You place an...
Asap,, You are given a spherical mirror and wish to determine its properties. You place an object on its axis, 30.7 cm in front of it, and discover that the mirror creates a virtual image located 18.9 cm from the mirror. Find the mirror's focal length. cm focal length: Calculate the mirror...
1 answer
Analyze the difference between professional identity and interprofessional identity and provide 2 strategies for how they...
Analyze the difference between professional identity and interprofessional identity and provide 2 strategies for how they could be co-developed during initial professional training/education....
1 answer
Calculate the solubility at 25 °C of PbCrO4 in pure water and in a 0.0070 M...
Calculate the solubility at 25 °C of PbCrO4 in pure water and in a 0.0070 M Na, CrO 4 solution. You'll find K, data in the ALEKS Data tab. Round both of your answers to 2 significant digits. solubility in pure water: FF solubility in 0.0070 M Na2CrO4 solution: x 6 ?...