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Issue:

Science

 

Written by:

Frederick S

 

Date added:

January 28, 2014

 

Level:

University

 

Grade:

A

 

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11 / 3079

 

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Due to the complex nature of the law and the implications it has on the firm’s total risk, it imperative to highlight the techniques available for managing corporate liability exposure. A Component of Pure Risk Liability exposure is a function of pure risk. It is a risk borne by the existence or nature of a firm, and is associated with possible reductions in business value from various sources, some of which are; damage to the firm’s assets, legal liability, worker injury, employee benefits, etc...
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It is a risk borne by the existence or nature of a firm, and is associated with possible reductions in business value from various sources, some of which are; damage to the firm’s assets, legal liability, worker injury, employee benefits, etc... In that sense, liability exposure could be defined as the degree to which a business entity is open to the legal elements of pure risk...
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