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Whitewater Rapids provides canoes to tourists eager to ride Whitewater River's rapids. Management ...

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Whitewater Rapids provides canoes to tourists eager to ride Whitewater River's rapids. Management ...

Whitewater Rapids provides canoes to tourists eager to ride Whitewater River's rapids. Management has determined that there is one chance in a thousand of a customer being injured or killed. Settlement of resulting lawsuits has an average cost of $850,000. Insurance with a $100,000 deductible is available. It covers the costs of lawsuits, unless there is evidence of criminal negligence. What is the impact of this risk without insurance?

• $10

• $850

• $100,000

• $850,000

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Accounting Information Systems

Edition: 14^th

Authors: Romney, Steinbart

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