High-Severity and Low-Probability Risks Are Best

question 14

Multiple Choice

High-severity and low-probability risks are best:

• A)transferred.
• B)evaded.
• C)accepted.
• D)retained.

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Definitions:

Free-Trade Zone

A designated area within a country where goods can be imported, stored, processed, and exported without the intervention of customs authorities.

North American Free Trade Agreement

An agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America aimed at reducing trading costs, increasing business investment, and helping North America be more competitive in the global marketplace.

Tariffs

Taxes imposed by a government on imported or exported goods, often used to protect domestic industries against foreign competition.

American Life

The social, cultural, and economic experiences and conditions characteristic of living in the United States.