Company ABC decides to outsource certain activities to an unrelated company and have
that company assume the associated loss exposures. What loss control technique is
Company ABC using?
Company A is a large public company with annual revenue of $1.2 billion and high fixed
costs. Its stock is listed on the New York Stock Exchange. Company B is a mid-sized
company with annual revenue of $100 million and low fixed costs. Its stock is listed on the
NASDAQ. Which of the following statements is MOST LIKELY to be true when comparing
Company A and Company B?