Management Has the Responsibility, and the Ability, to Take Action

question 28

Multiple Choice

Management has the responsibility, and the ability, to take action to reduce risks or to lessen the impact al nearly all risks an organization faces.The steps taken by management to lessen the risk or reduce the impact of the risk, are referred to as:

• A)Programs
• B)Risk assessment
• C)Information evaluation
• D)Controls

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Definitions:

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Fair Value

The amount one would get from selling an asset or the cost incurred to transfer a liability during a regulated transaction with participants in the market as of the valuation date.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, detailing assets, liabilities, and equity at a specific point in time.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.