Part II: Multiple choice (2.5 mark, 0.5 each) (ILO's: A1, C1, C2) 1. Due to the risk of electrical power cuts, hospitals need to install backup generators to make sure lifesaving machines continue operating. This treatment is considered: a. Avoidance b. Duplication c. Retention d. Non-insurance transfers 2. Fraudulent and inflated insurance claims are an example of a(n) a. Attitudinal hazard b. Physical hazard c. Moral hazard d. Legal hazard 3. An agriculture company is mainly involved in growing and harvesting cotton as a raw material for export. At the end of each harvest, the price could decrease or increase based on the global supply and demand for cotton. Possible adverse changes in the price of cotton is a(n) a. Financiatrisk b. Strategic risk 2 Finc 323 - Assignment One ges: 2 of 5 Words: of 70