Prior to Completing the Financing Arrangements Needed to Fund the Purchase

question 13

Multiple Choice

Prior to completing the financing arrangements needed to fund the purchase of an IT consulting firm,Albert Brinkman met several times with his bank and his accountant to review the terms of the bank's financing offer against the business's financial statements.Which of the following correctly identifies and matches this activity with its corresponding step in the risk management process?

• A) avoiding the possibility of loss; first step
• B) transferring legal risk; fourth step
• C) evaluating severity of potential loss; third step
• D) assessing risk in business decisions; first step

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Definitions:

Passion

A strong, intense emotion or enthusiasm towards activities, ideas, or fields of interest, often driving motivation and commitment.

Work

The effort applied towards producing or accomplishing tasks, either physical or mental, for a purpose such as earning income.

Leader

An individual who guides, directs, or influences others toward a common goal or vision, often exhibiting particular traits or styles of leadership.

Trustworthiness

The quality of being reliable, honest, and deserving of trust, which is fundamental in establishing confidence in relationships.