A Manufacturing Firm Identified That It Would Have Difficulty Sourcing

question 43

Multiple Choice

A manufacturing firm identified that it would have difficulty sourcing raw materials locally,so it decided to relocate its production facilities.According to COSO,this decision represents which of the following response to the risk?

• A)Risk reduction.
• B)Prospect theory.
• C)Risk sharing.
• D)Risk acceptance.

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Definitions:

Evaluating Outcomes

The process of measuring, assessing, and analyzing the results of a program, policy, or intervention to determine its effectiveness or impact.

Employee Selection

The process of interviewing and evaluating candidates for a specific job and deciding whom to hire.

Recruiting

Any activity carried on by the organization with the primary purpose of identifying and attracting potential employees.

Lead-The-Market Pay Strategy

A compensation strategy where an organization aims to offer higher salaries than its competitors to attract and retain top talent.