Which of the Following Will a Business Use to Reduce

question 27

Multiple Choice

Which of the following will a business use to reduce its liability?

• A)risk reduction
• B)risk absorption
• C)risk avoidance
• D)risk transfer
• E)all of the above

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Definitions:

Increase Borrowing

The act of obtaining more funds through loans, typically to support business operations or expansion.

Cash Cycle

The time between cash disbursement and cash collection.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Accounts Receivable Turnover

This ratio measures how efficiently a company collects revenue from its customers by dividing total sales by the average accounts receivable during a specific period.