Which of the following is a benefit of using insurance in business?

Using insurance in business provides financial support in case of loss, which is a key benefit that can help a company manage its risks more effectively. By transferring the financial consequences of certain risks to an insurance provider, businesses can protect their assets and maintain cash flow in the event of unforeseen circumstances, such as property damage, theft, liability claims, or business interruptions. This financial backing allows businesses to recover more quickly from losses, facilitating stability and ongoing operations.

The concept of eliminating all business risks is unrealistic, as risks will always exist in some form. Insurance can mitigate those risks but cannot remove them entirely. While insurance may contribute to operational stability, it does not guarantee higher sales or improve market performance, since sales depend on various factors, including marketing strategies and consumer demand. Furthermore, insurance does not make employees invulnerable to accidents; rather, it provides a safety net for the financial implications of such incidents without affecting the inherent risks associated with workplace environments.