All of the Following Are Disadvantages of Using Insurance in a Commercial

Multiple Choice

All of the following are disadvantages of using insurance in a commercial risk management program EXCEPT

A) There is an opportunity cost because premiums must be paid in advance.
B) Considerable time and effort must be spent selecting and negotiating coverages.
C) It results in considerable fluctuations in earnings after losses occur.
D) Attitudes toward loss control may become lax when losses are insured.