What Should You Do If the Severity of Risk Is

question 59

Multiple Choice

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

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

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Definitions:

Current Liabilities

Financial obligations or debts a company must pay within a year or within its normal operating cycle.

Long-term Liabilities

Financial obligations of a business that are due for repayment more than one year in the future, such as bonds or long-term loans.

Current Liabilities

Financial obligations that a company is expected to pay within one year.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.