Scenario 17.4 Consider the Following Information

question 12

Multiple Choice

Scenario 17.4
Consider the following information:
StowUrStuff Storage is located slightly below sea level in a coastal town. It could build and maintain a flood control system around its property at an annual cost of $1000, and if it did so, the probability of a flood's doing $1,000,000 in damage during the year would be .005. With no flood control system, the probability of such a flood would be .01.
-Refer to Scenario 17.4. If there is no flood insurance and no flood control system is in place, the expected loss from a flood is:

• A) $5,000.
• B) $10,000.
• C) $100,000.
• D) $200,000.
• E) $1,000,000.

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Definitions:

Intended Strategy

The formulated plan.

Realized

Describes outcomes or results that have been achieved or attained, especially in the context of goals, objectives, or potential.

Intentional

Intentional refers to doing something with purpose or on purpose, indicating actions that are deliberate and planned.

Restructuring Strategy

A corporate management term referring to the act of reorganizing the legal, ownership, operational, or other structures of a company to make it more profitable or better organized for its present needs.