The Three Steps in Risk Management Are

question 56

Multiple Choice

The three steps in risk management are

• A) recognition, evaluation, and insurance.
• B) realization, response, and reaction.
• C) identification, evaluation, and response.
• D) assessment, formulation, and implementation.
• E) evaluation, qualification, and litigation.

---

Definitions:

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls.

Complements

Goods or services that are often used together, where an increase in demand for one leads to an increase in demand for the other.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with high elasticity indicating a strong response and low elasticity indicating a weak response.

Free Range Eggs

Eggs that come from chickens that have been given the freedom to roam outdoors, rather than being confined in small cages.