Multiple choice

Insurance refers to

  1. Spreading of risk among a large number of people

  2. Sale and purchase of goods

  3. Storing of goods

  4. Promotion of products for sale
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Right answer Because  insurance spreads the risk among a large number of people. Suppose 100 people take a policy for risk against fire, and Mr A one of those, suffers a loss of Rs 10,000 due to fire, only he would be compensated among 100 people.

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