John Owns a Small Department Store That Issues Its Own

question 42

Multiple Choice

John owns a small department store that issues its own credit cards. He has been considering phasing out his own credit card and accepting Visa or MasterCard. If John chooses to do this he will be going from a position of risk to one of risk .

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

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Definitions:

Business Plan

A document that outlines the strategic direction, objectives, and operational activities of a business for a specific period.

Acquiring Resources

The process of obtaining necessary materials, capital, personnel, or other assets required to undertake a project or run a business.

Sweatshop

A place of employment that has poor, socially unacceptable working conditions, often with unreasonably low wages.

Working Conditions

Refers to the environment, hours, and policies under which employees operate.