Which of the Following Statements Is TRUE with Respect to Risk

question 38

Multiple Choice

Which of the following statements is TRUE with respect to risk management and incorporation?

• A) Incorporation spreads the risk of liability because if one corporation becomes liable, every other corporation in the same province may be required to pay the debt.
• B) Incorporation reduces the risk of liability because the doctrine of limited liability usually means that a corporation's debts must be paid by the corporation and not by the people who run the corporation.
• C) Incorporation increases the risk of liability because a shareholder of a corporation is personally liable for all of the corporation's torts.
• D) Incorporation is irrelevant to risk management because corporations cannot be held liable
• E) Incorporation completely eliminates the risk of liability because the government is responsible for a corporation's debts.

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Definitions:

Lead-The-Market Pay Strategy

A compensation strategy where an organization aims to offer wages higher than the average market rate to attract and retain top talent.

Direct Applicants

Individuals who apply for a position directly with an employer, without intermediaries like recruiters or agencies.

Internal Recruitment

The process by which a business or organization seeks to fill vacancies from within its existing workforce, rather than by hiring externally.

Employee Referrals

A recruitment method where existing employees recommend potential candidates for open positions.