When a Business Practices Risk Management, the Decision NOT to Issue

question 90

Multiple Choice

When a business practices risk management, the decision NOT to issue credit and deal only in cash -only sales is risk

• A) assumption.
• B) transfer.
• C) reduction.
• D) avoidance.

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Definitions:

Conditional Guarantors

Parties that agree to fulfill the obligations of a defaulting party under certain conditions specified in the agreement.

Cosureties

Cosureties are multiple parties that collectively agree to be surety, sharing the liability and responsibility for fulfilling the principal's obligations.

Absolute Sureties

Individuals or entities that guarantee the performance of a debtor or contractual obligations without any conditions.

Financing Statement

A document filed by a creditor to indicate a security interest in the assets of a debtor, typically used in secured transactions.