Robert, owner and operator of a local nursing home, is designing an addition. Though, he realized that water sprinklers and smoke detectors were now required by state regulations, it was not a problem for him. His existing structure already had sprinklers and detectors because he felt that this was an effective strategy to
A) self-insure against the risk of fire loss.
B) minimize the speculative risk of a fire.
C) reduce the risk of a fire loss.
D) avoid the risk of a fire loss.

Question

Quizplus · Accepted Answer

A firm can reduce risk by establishing loss-prevention programs such as fire drills, health education, safety inspections, equipment maintenance, and accident prevention programs. Water sprinklers and smoke detectors are used to reduce the risk of fire loss.

Robert, Owner and Operator of a Local Nursing Home, Is