Which of the Following Risk Management Objectives Would Be Strongly

question 43

Multiple Choice

Which of the following risk management objectives would be strongly supported by the use of a limitation of liability clause in a contract?

• A) It reduces liability for the risk and is enforceable under law.
• B) It transfers the risk, is legally enforceable, and is acceptable to the other party.
• C) It eliminates the risk, limits the liability, and is acceptable the other party.
• D) It retains a standard form of contractual of limited liability.

---

Definitions:

Payment Methods

Various ways through which businesses or individuals can settle transactions, including cash, credit/debit cards, electronic funds transfer, and checks.

Pay Scheduled Liabilities

The process of making payments towards debts or obligations that are due according to a predetermined schedule.

Pay Employees

The process of compensating workers for their services, typically referring to issuing paychecks or direct deposit payments for wages or salaries.

Write Checks

The action of completing a check to make a payment from a bank account, including details such as the date, payee name, and amount.