Asked by a

What does purchasing insurance for a business reveal about the business owner’s 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.

All Answers 1

Answered by GPT-5 mini AI
"It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company."

Explanation: buying insurance indicates the owner recognizes potential losses and prefers to pay a premium to transfer the financial consequences to an insurer (risk transfer), not eliminate the risk or give up ownership.