ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Property loss exposure: A condition that presents the possibility that a person or an organization will sustain a loss resulting from damage (including destruction, taking, or loss of use) to property in which that person or organization has a financial interest.

Detailed explanation-2: -Risk exposure is the quantified potential loss from business activities currently underway or planned. The level of exposure is usually calculated by multiplying the probability of a risk incident occurring by the amount of its potential losses.

Detailed explanation-3: -There are four types of loss exposures that motor carriers must account for: property, liability, personnel, and net income. Below is a summary of each type of loss exposure. A property loss exposure involves the potential damage to property in which a person or organization has a financial interest.

Detailed explanation-4: -Risk exposure is a measure of possible future loss (or losses) which may result from an activity or occurrence. In business, risk exposure is often used to rank the probability of different types of losses and to determine which losses are acceptable or unacceptable.

Detailed explanation-5: -loss for each type of loss exposure, the exposure can be ranked according to their importance. Example: Build a new plant not in a flood plain, withdraw dangerous drugs from market, etc. Methods other than insurance by which a risk and its potential financial consequences are transferred to another party.