What Should You Do If the Severity of Risk Is

question 53

Multiple Choice

What should you do if the severity of risk is high and the frequency of the risk event occurring is high?

• A) Purchase insurance.
• B) Accept the risk.
• C) Avoid the risk.
• D) Manage the risk.

Distinguish different types of organizational structures and their characteristics.

Know the principles of organizing and the process of organizing within a company.

Differentiate between line authority, staff authority, and functional authority.

Understand the concepts of centralized and decentralized authority and their implications in organizational management.

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Definitions:

Anthropocentric Approach

A viewpoint that considers human beings as the central most significant entities of the universe, often evaluating other entities in terms of their usefulness to humans.

Job Design

The process of organizing tasks, duties, and responsibilities into a productive unit of work to improve satisfaction and performance.

Social Information-Processing

A theory that suggests individuals understand and interpret social interactions and relationships through the exchange and processing of information.

Objective Core

The central and fundamental goals or purposes of an organization or individual that are measurable and unbiased.