Prior to Completing the Financing Arrangements Needed to Fund the Purchase

question 12

Multiple Choice

Prior to completing the financing arrangements needed to fund the purchase of an IT consulting firm,Albert Brinkman met several times with his bank and his accountant to review the terms of the bank's financing offer against the business's financial statements.What activity and corresponding step in the legal risk management process is this?

• A) avoiding the possibility of loss; first step
• B) transferring legal risk; fourth step
• C) evaluating severity of potential loss; third step
• D) identifying risk in business decisions; first step

---

Definitions:

Amoral Manager

A type of manager who lacks a clear understanding or concern for the ethical implications of their decisions and actions in the business environment.

Ethical Implications

The moral consequences or considerations associated with a particular action, decision, or policy, evaluating its rightness or wrongness.

Utilitarian Benefits

Utilitarian benefits refer to the functional or practical advantages that consumers receive from using a product or service, emphasizing usability and efficiency.

General Ethical Principle

Foundational guidelines that govern behaviors and decisions based on notions of right and wrong.