Which of the Following Is Not an Example of a Real

question 42

Multiple Choice

Which of the following is not an example of a real risk management technique?

• A)Hedging transactions
• B)Abandoning high- risk projects
• C)Retrenching employees
• D)Choosing less- risky production processes

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Definitions:

Supplier

A party that provides goods or services to another entity, typically in a B2B (business-to-business) relationship.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities.

Asset Turnover Ratio

A financial metric that measures how efficiently a company uses its assets to generate sales revenue.

Receivables Turnover Ratio

A financial ratio indicating how efficiently a company collects on its accounts receivable, calculated as net credit sales divided by average accounts receivable.