Consider the Following Examples of Risk: I

question 5

Multiple Choice

Consider the following examples of risk: i. A corporation is unable to issue bonds because its credit rating is too low.ii. A U.S. auto manufacturer tries to market a car in Mexico. The car does not sell because the Spanish translation of its name means "it doesn't go."
Iii) An employee receives insufficient training in how to use specialized software.iv. Due to employee theft, a corporation spends more money than anticipated buying new tools.Which pair of risks belongs to the same category in Brown's risk taxonomy?

• A)I and II
• B)II and III
• C)I and III
• D)I and IV

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Definitions:

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products or departments.

Natural Resources

Assets provided by nature without human intervention, such as minerals, forests, water, and land, that can be used for economic gain.

Natural Resources

Refers to commodities or raw materials that originate from the Earth and can be used for economic gain, such as minerals, forests, water, and land.

Act of Nature

Events caused by natural forces without human intervention, often resulting in damage or disruption, such as hurricanes, earthquakes, or floods.