PMP Exam Set C – Q42

You are managing a fund raising golf tournament that has a hole-in-one contest. However, your company can’t afford to pay the $1,000,000 award if someone does get a hole in one, so they have elected to take out an insurance policy in the event that someone does get lucky. This is an example of?

A. Sharing
B. Mitigation
C. Transference
D. Avoidance

C. Transference