Post Utme Al Hikmah University 2020 Commerce Question 2

Practice objective / multiple choice question 2 from the 2020 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2020 Commerce Objective / Multiple Choice
Question 2 POST_UTME_AL-HIKMAH_UNIVERSITY • 2020 • COMMERCE • objective

A firm is considering two different types of insurance policies to protect against potential losses. Policy A has a higher premium but provides a higher level of coverage, while Policy B has a lower premium but provides a lower level of coverage. What is the primary factor that the firm should consider when deciding between these two policies?

Answer Options

A. The level of coverage provided
B. The premium cost
Correct Answer C. The potential losses to be insured
D. The firm's financial resources
Correct Answer
C
Correct Option:
The potential losses to be insured

About This Question

This is Post Utme Al Hikmah University 2020 Commerce Question 2. It is one of the objective questions from the 2020 Post Utme Al Hikmah University Commerce examination.

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