12.Which of the following is most likely to need a lot of life insurance? (a)a single person with no dependents (b)a divorced person with no dependents (c)a double-income couple with no kids (d)married person with children Answer:(d) 13. is the quantification of the costs associated with the risks that have been identified in the first step of risk management. (a)Risk assessment (b)Selection of risk management techniques (c)Implementation (d)Review Answer:(a) 14.Selling a risky asset to someone else and buying insurance are examples of (a)risk avoidance (b)loss prevention and control (c)risk transfer (d)risk retention Answer:(c) 15.One is said to a risk when the action taken to reduce one's exposure to a loss also causes one to give up the possibility of a gain. (a)insure (b)diversify (c)hedge (d)pay a premium with Answer:(c) 10-410-4 12. Which of the following is most likely to need a lot of life insurance? (a) a single person with no dependents (b) a divorced person with no dependents (c) a double-income couple with no kids (d) married person with children Answer: (d) 13. ________ is the quantification of the costs associated with the risks that have been identified in the first step of risk management. (a) Risk assessment (b) Selection of risk management techniques (c) Implementation (d) Review Answer: (a) 14. Selling a risky asset to someone else and buying insurance are examples of ________. (a) risk avoidance (b) loss prevention and control (c) risk transfer (d) risk retention Answer: (c) 15. One is said to ________ a risk when the action taken to reduce one’s exposure to a loss also causes one to give up the possibility of a gain. (a) insure (b) diversify (c) hedge (d) pay a premium with Answer: (c)