Which Risk Management Alternative Is Feasible When the Likelihood of an Event

question 64

Multiple Choice

Which risk management alternative is feasible when the likelihood of an event that could cause a financial loss is very low and the potential financial loss due to the event is small?

• A) Avoid risk
• B) Reduce risk
• C) Accept risk
• D) Insure against risk

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Definitions:

Private International Disputes

Conflicts that arise between private parties that cross international borders, often requiring the application of foreign law.

Joint Venture

An arrangement in which two or more entities decide to combine their assets to achieve a particular goal.

Management Responsibilities

Entail the duties and tasks managers are expected to perform in directing an organization, including planning, organizing, leading, and controlling.

Share Profits

The distribution of a portion of a company's earnings to its shareholders, typically in the form of cash payments or additional shares.