Frazier Electric Keeps a Paper Copy of Business Records at the Company's

question 8

Multiple Choice

Frazier Electric keeps a paper copy of business records at the company's headquarters.The company also has two back-up copies of business records stored in electronic files.The electronic files are kept in the event the paper records are damaged or destroyed.The back-up files illustrate which of the following risk control techniques?

• A)loss prevention
• B)loss reduction
• C)diversification
• D)duplication

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Definitions:

Preferred Stock

A class of ownership in a corporation with a fixed dividend, receiving priority over common stock in dividend distribution and asset liquidation.

Preferred Stock

A class of stock that provides shareholders with a fixed dividend before any dividends are issued to common stockholders, often with no voting rights.

Common Stock

A type of equity ownership in a corporation, representing a claim on part of the company's profits and assets.

Dividends in Arrears

Outstanding dividend payments that have not been paid to preferred shareholders.