Which of the Following Describes the Overall Primary Objective of the Legal

question 6

Multiple Choice

Which of the following describes the overall primary objective of the legal risk management process?

• A) prevention of loss
• B) reduction of risk
• C) transfer of risk
• D) eliminating loss

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Definitions:

Inventory

Assets that are held for sale in the ordinary course of business, or in the process of being produced for such sale, or in the form of materials to be consumed in the production process.

Sole Proprietor

An individual who owns and operates a business by themselves, without forming a corporation or a partnership, bearing full responsibility for the business's debts and obligations.

Schedule C

A form used by self-employed individuals or sole proprietors to report their business income and expenses to the IRS.

Ordinary Gain

Ordinary gain refers to the profit that arises from the sale of an asset or property, which is taxable at standard income tax rates.