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

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Definitions:

Downward Communication

The flow of information from higher levels of an organization's hierarchy to the lower levels, often for directives, updates, or feedback.

Active Listening

A communication technique involving giving full attention to the speaker, understanding their message, and providing appropriate feedback.

Processing

The series of actions or steps taken in order to achieve a particular end, often relating to the handling or management of information or materials.

Active Listening

The practice of paying full attention to the speaker, understanding their message, and responding thoughtfully.