All of the following are disadvantages of using insurance EXCEPT

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All of the following are disadvantages of using insurance EXCEPT

 Options:

 

  • A. There is an opportunity cost because premiums must be paid in advance.
  • B. Considerable time and effort must be spent selecting and negotiating coverages.
  • C. It results in considerable fluctuations in earnings after a loss occurs.
  • D. Attitudes toward loss control may become lax.

 

The Correct Answer Is:

  • C. It results in considerable fluctuations in earnings after a loss occurs.

Conclusion

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