Loss control is an activity that:
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A. B. C. D.B
Loss control is an essential activity that aims to mitigate the negative consequences of unexpected events that result in a loss. This loss can be in the form of financial, reputational, or operational loss. The objective of loss control is to prevent or reduce the frequency and severity of these losses by implementing effective risk management strategies.
Option A, "Avoid the act that would create loss," is a correct answer to the question of how to prevent loss. By avoiding actions that would create a loss, we eliminate the risk altogether, thereby mitigating the possibility of a loss occurring. This strategy is typically employed when the risk is deemed too significant or unacceptable to the organization.
Option B, "Lessens the severity of loss once it occurs," is an incorrect answer. Once a loss has occurred, it is challenging to reduce its severity. The objective of loss control is to prevent the loss from happening or mitigate its severity if it does occur. Therefore, option C, "Lessens the severity of loss after its occurrence," is also an incorrect answer.
In conclusion, the correct answer to this question is A. Avoid the act that would create loss. However, it is important to note that option B can be part of a loss control strategy in the form of risk transfer or risk financing, where the organization transfers the financial impact of a loss to another party or absorbs the loss through insurance or other means.