A project manager on a construction project includes a line item in the budget for insurance for the equipment and job site. This is an example of:?

  ................ B. Transference

B. Transference 

Common example of risk transference includes Insurance, Performance bonds, Warranties, Guarantees, Fixed-price contracts

Answer: BExplanation: One effective way to deal with a risk is to pay someone else to accept it for you. This is called transference. The most common way to do this is to buy insurance.