What Is Measured by the Degree of Reduction in Vulnerability

question 18

Multiple Choice

What is measured by the degree of reduction in vulnerability to the hazard, and refers to success in protecting both persons and property?

• A) Efficiency
• B) Efficacy
• C) Risk Assessment
• D) Mitigation

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Definitions:

Firm Completion

A commitment to finish a project or deliver a product by a specified date.

Asymmetric Information

Assumes managers have more complete information than investors about a firm’s prospects—can have an important effect on capital structure.

Diversified Portfolios

Investment strategies involving the mixing of various asset classes and securities to reduce risk through diversification.

Financial Distress

A scenario in which a business is unable to fulfill or struggles to pay its debts to those it owes money to.