An events business is organising an outdoor music festival. It must pay the venue and performers even if severe weather causes the festival to be cancelled. The business is considering cancellation insurance for this risk.
Explain how taking out this insurance could benefit the events business.
82 exam-style questions on OCR GCSE Economics 2.8 The role of money and financial markets, covering 2.8.1 Money as a medium of exchange, 2.8.2 Role of the financial sector, 2.8.3 Importance of the financial sector, 2.8.4 Interest rates and saving, borrowing, investment, and 2.8.5 Effect of interest rate changes. Each one has a worked solution and a mark scheme showing where the marks go.