question 1\na small business owner purchases an insurance policy to protect his building in the event a fire…

question 1\na small business owner purchases an insurance policy to protect his building in the event a fire occurs.\nwhich type of risk management choice does this demonstrate?\nrisk control\nrisk avoidance\nrisk retention\nrisk transfer

question 1\na small business owner purchases an insurance policy to protect his building in the event a fire occurs.\nwhich type of risk management choice does this demonstrate?\nrisk control\nrisk avoidance\nrisk retention\nrisk transfer

Answer

Brief Explanations:

When a business owner buys an insurance policy, they are shifting the financial risk of a fire - related loss to the insurance company. Risk transfer involves passing on the risk to another party, usually through a contractual arrangement like an insurance policy. Risk control focuses on reducing the likelihood or impact of a risk event, risk avoidance means not engaging in activities that pose the risk, and risk retention is accepting the risk and dealing with its consequences internally.

Answer:

D. Risk transfer