Asked by Kerosi Giddy on Jul 12, 2024

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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.

Insurance Company

A financial institution that provides a range of insurance policies to protect individuals and businesses against various risks.

Mutual Fund

is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

Equity-Financed

A method of funding in which a company raises capital through the sale of its own equity rather than borrowing money.

  • Explain the role of insurance companies in risk management.
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DS
Davis stanleyJul 18, 2024
Final Answer :
B
Explanation :
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.