A Firm Can Reduce Risk by Gaining Control Over the Operating

question 19

Multiple Choice

A firm can reduce risk by gaining control over the operating environment. Which of the following is an example?

• A) Using general purpose assets.
• B) Hedging through a futures contract.
• C) Increasing the customer base.
• D) Using patents and copyrights.

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Definitions:

Emergency Response Protocols

These are structured, pre-planned procedures and guidelines designed to be executed in reaction to emergency situations to mitigate harm and ensure safety.

High Chance

Indicates a situation or condition where there is a significant probability or likelihood of an event occurring.

High Impact

Actions, decisions, or events that have a significant effect or influence on a situation.

Emergency Response Protocols

Predefined plans and procedures activated in response to emergencies, aimed at mitigating risks and protecting assets, including people and property.