Firestone and Ford Recalled Thousands of Tires When Several People

question 40

Multiple Choice

Firestone and Ford recalled thousands of tires when several people died in traffic accidents blamed on faulty tires. This is an example of which of the following?

• A) Avoiding the risk
• B) Self-insuring against the risk
• C) Reducing the risk
• D) A loss-prevention program

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Definitions:

Expense

Money spent or cost incurred in an organization's efforts to generate revenue, representing the cost of doing business.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.

Accounts Payable

The amount of money owed by a company to its creditors for goods and services received but not yet paid for.

Credit Sale

A type of transaction where the goods or services are provided to the customer with the agreement that payment will be made at a later date.