Robert, Owner and Operator of a Local Nursing Home, Is

Multiple Choice

Robert, owner and operator of a local nursing home, is designing an addition. Though, he realized that water sprinklers and smoke detectors were now required by state regulations, it was not a problem for him. His existing structure already had sprinklers and detectors because he felt that this was an effective strategy to

A) self-insure against the risk of fire loss.
B) minimize the speculative risk of a fire.
C) reduce the risk of a fire loss.
D) avoid the risk of a fire loss.