9
QuizMultiple Choice

Principles of Financial Planning — Unit test

Question 9 of 10 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

What does purchasing insurance for a business reveal about the business owner’s attitude toward financial risk?

Answer
A
It shows that the owner expects financial risk and is eliminating it by making an insurance company liable.
B
It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company.
C
It shows that the owner is willing to share ownership of the business to reduce financial risk.
D
It shows that the owner is willing to budget for short-term financial risks to avoid long-term risks.
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