Which of the Following Is the Most Important Reason for Firms

question 30

Multiple Choice

Which of the following is the most important reason for firms to use risk management techniques?

• A) To make supernormal profits
• B) To reduce the chance of catastrophic financial distress
• C) To reduce management's liability
• D) To control inventory losses

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Definitions:

Three Phases

A conceptual model dividing a process or phenomenon into three distinct stages or stages for analysis or understanding.

Impression Management Tools

Strategies or methodologies used by individuals or organizations to control or influence the perceptions others have of them.

Successful Applicants

Individuals who have met the criteria and passed the selection process for a job, program, or opportunity.

Groupthink

A psychological phenomenon where the desire for harmony or conformity within a group results in irrational or dysfunctional decision-making outcomes.