Which of the Following Statements About Risk Is True

question 65

Multiple Choice

Which of the following statements about risk is true?

• A)Risk occurs when the costs or benefits of an event or choice are uncertain.
• B)It explains why the changing value of money is such a challenge.
• C)Risk should always be avoided, at any cost.
• D)None of these statements are true.

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Definitions:

Contract

An agreement that is enforceable by law, involving two or more parties, which stipulates their duties and entitlements.

Ratification

The act of officially approving an agreement or treaty, often by a vote or other formal decision.

Real Authority

The actual power given to an agent or representative to act on behalf of another person or entity in legal or business matters.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principle, leading a third party to believe that an agent has the authority to act.