Home › Bihar Board Class 12 (Commerce) › Business Studies › Business Services › How does insurance spread losses among many peop…
How does insurance spread losses among many people?
ABy pooling funds from many
BBy banning risky activity
CBy fixing market prices
DBy printing currency
Answer & Solution
Correct answer: A. By pooling funds from many
Funds from many insured entities are pooled to pay the losses some of them suffer.
Related questions
Why might a business use a warehouse before transport?Which goods need warehouse storage to mature?Warehouses usually have loading docks accessible to which vehicles?In India a warehouse may be called what?What is a building for storing goods called?What is a definite loss in insurance?Which purchase is generally not considered insurable?Which principle makes several insurers share one loss?