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Legal Definitions - exposure
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Definition of exposure
Definition: Exposure refers to the amount of risk or liability that a person or entity is subject to. This can include potential harm or loss that may result from various factors, such as financial investments, legal disputes, or environmental hazards.
Examples:
- A company's exposure to market fluctuations can impact its profitability.
- A homeowner's exposure to natural disasters, such as floods or earthquakes, can affect their property value and insurance rates.
- A person's exposure to harmful chemicals or radiation can lead to health problems.
These examples illustrate how exposure can refer to different types of risks and liabilities that individuals or organizations may face. By understanding their exposure, they can take steps to mitigate potential harm or loss.
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Simple Definition
Exposure: This means how much risk or danger someone is facing. For example, if you are outside in the sun for a long time, you have exposure to the sun's rays which can be harmful. In legal terms, exposure refers to the amount of responsibility or liability someone has for something. It's important to know your exposure so you can make informed decisions and take steps to protect yourself.
Ethics is knowing the difference between what you have a right to do and what is right to do.
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