Which of the Following Is the Risk That Most Concerns

question 147

Multiple Choice

Which of the following is the risk that most concerns businesspeople?

• A)Avoidable risk
• B)Pure risk
• C)Speculative risk
• D)Managed risk

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Definitions:

Restricted Fund Method

An accounting practice where funds specified for certain purposes are kept separate in financial records to ensure their use only for those purposes.

General Fund

A primary operating fund used by governments to finance regular, day-to-day services and activities.

Endowment Fund

A fund established to maintain principal inviolate and to use earnings for specific purposes, often found in non-profit or educational institutions.

Fund Accounting

A system of accounting used primarily by non-profit or governmental organizations where resources are categorized into funds according to their designated purpose or restrictions.