When Risks Are Shared Across Many Different Assets or People

question 80

Multiple Choice

When risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual, it is called:

• A)diversification.
• B)risk pooling.
• C)risk aversion.
• D)risk analysis.

---

Definitions:

Polychronic

Describes a cultural approach to time management that values multitasking and the handling of multiple activities simultaneously.

Polycentric

An approach in international business, where a company adapts its strategies and decisions to the local conditions of the countries where it operates.

Regiocentric

An approach in international business that prioritizes regional markets and strategies, often blending both global and local considerations.

Global Company

A business that operates and has a presence in multiple countries across the world, transcending national boundaries in its operations.