Which of the Following Risk Strategies Typically Involves Developing a Contingency

question 85

Multiple Choice

Which of the following risk strategies typically involves developing a contingency plan to accompany new product development?

• A) Passive avoidance
• B) Active acceptance
• C) Mitigation
• D) Transfer

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Definitions:

Operating Efficiency

A measure of how well a company uses its resources to generate profits, indicating the effectiveness of management strategies.

Productive Life

Refers to the period of time over which an asset is expected to be useful to the owning entity in generating revenue or income.

Plant Asset

Long-term tangible assets used in the production of goods and services, such as buildings, machinery, and equipment.

Plant Assets

Fixed, tangible assets used in the operation of a business, such as machinery, buildings, and equipment, that have a useful life of more than one year.