what does purchasing insurance for a business reveal about the business owners attitude toward financial…

what does purchasing insurance for a business reveal about the business owners attitude toward financial risk? it shows that the owner expects financial risk and is eliminating it by making an insurance company liable. it shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company. it shows that the owner is willing to share ownership of the business to reduce financial risk. it shows that the owner is willing to budget for short - term financial risks to avoid long - term risks.

what does purchasing insurance for a business reveal about the business owners attitude toward financial risk? it shows that the owner expects financial risk and is eliminating it by making an insurance company liable. it shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company. it shows that the owner is willing to share ownership of the business to reduce financial risk. it shows that the owner is willing to budget for short - term financial risks to avoid long - term risks.

Answer

Brief Explanations:

Purchasing business insurance means the owner knows there are financial risks and is willing to pay a premium (usually monthly) to shift those risks to an insurance company. Insurance doesn't eliminate risk but transfers it. Sharing ownership is not related to buying insurance, and the focus is on risk - transfer rather than short - term vs long - term budgeting in the context of insurance purchase.

Answer:

It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company.