In Order to Evaluate Risk, Management May Also Set Qualitative

question 55

Multiple Choice

In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from the least to the most risky. 1. completely new market in Canada
2) completely new market in South America
3) addition to normal product line
4) repair to old machinery

• A) 4, 3, 1, 2
• B) 1, 2, 3, 4
• C) 3, 4, 1, 2
• D) 2, 3, 4, 1

---

Definitions:

Retrenchment

A strategic reduction of business activities or workforce by a company to cut expenses and stabilize financially.

Turnaround Strategy

A set of actions taken by a company in an attempt to reverse a period of decline or poor performance.

Outplacement Counseling

Support services provided by organizations to help former employees transition to new jobs, offering career guidance, resume advice, and interview preparation.

Differentiation Strategy

A business approach where a company seeks to be unique in its industry along some dimensions valued by customers.