You Work as a Risk Management Advisor for Sigma Ltd

question 34

Multiple Choice

You work as a risk management advisor for Sigma Ltd. Sigma Ltd intends to place a new type of widget on the market. It wants to know what steps it should take with respect to warning people about the dangers associated with that type of widget. Which of the following statements is TRUE?

• A) Sigma Ltd is not required to warn about every possible danger that it knows about when a widget is sold.
• B) Sigma Ltd only needs to issue a warning with respect to dangers that arise when a widget is used for its intended purpose.
• C) Sigma Ltd only needs to issue a warning with respect to dangers that it is aware of before the widgets are sold.
• D) As the manufacturer, Sigma Ltd is the only party that could be required to issue a warning.
• E) Sigma Ltd only needs to issue a warning to people who purchase widgets.

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Definitions:

Risk Aversion

A behavioral trait or tendency to avoid taking risks, preferring options that are perceived as safer or have more predictable outcomes.

Error Management Theory

A theory that suggests humans have evolved biases in judgment and decision-making processes to minimize the cost of errors in uncertain situations, favoring the less costly error.

Enthusiasm

Intense and eager enjoyment, interest, or approval.

English Exam

A test or assessment designed to evaluate knowledge, understanding, and competency in the English language.