Financial Management Principles and Applications Study Set 3
Quiz 21: Corporate Risk Management
It Is Not Legal for a Corporation to Hold Life
It is not legal for a corporation to hold life insurance policies on its employees.
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Directors and officers insurance protects the company if key personnel die or leave the firm for other opportunities.
The decision to purchase insurance is justified if the cost of the contract is less than the expected loss.
The purchase of a forward contract involves the transfer of the risk of a loss from one entity to another.
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