Post Utme Wellspring University 2024 Commerce Question 39

Practice objective / multiple choice question 39 from the 2024 Post Utme Wellspring University Commerce examination.

Post Utme Wellspring University 2024 Commerce Objective / Multiple Choice
Question 39 POST_UTME_WELLSPRING_UNIVERSITY • 2024 • COMMERCE • objective

A company is considering two different insurance policies to protect against risks associated with its business operations. Policy A has a premium of ₦500,000 and a deductible of ₦100,000, while Policy B has a premium of ₦750,000 and a deductible of ₦50,000. If the company expects to incur a loss of ₦1 million, which policy should it choose?

Answer Options

A. Policy A, as it has a lower premium and deductible.
Correct Answer B. Policy B, as it has a higher premium but a lower deductible.
C. Policy A, as it has a higher deductible but a lower premium.
D. Policy B, as it has a lower deductible but a higher premium.
Correct Answer
B
Correct Option:
Policy B, as it has a higher premium but a lower deductible.

About This Question

This is Post Utme Wellspring University 2024 Commerce Question 39. It is one of the objective questions from the 2024 Post Utme Wellspring University Commerce examination.

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