Kayla faces risks and she pays a fee to ABC Company; in return, ABC Company agrees to accept some or all of Kayla's risks. ABC Company is
A)a mutual fund.
B)an insurance company.
C)a diversified company.
D)an equity-financed company.

Question

Quizplus · Accepted Answer

This scenario describes the fundamental business model of an insurance company, where individuals or entities pay premiums to the company in exchange for the company taking on certain risks, such as health, property, or liability risks.

Kayla Faces Risks and She Pays a Fee to ABC