In Order to Evaluate Risk, Management May Also Set Qualitative

question 43

Multiple Choice

In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from least risky to most risky, all other things being equal.
1) Completely new market in United States.
2) Completely new market in South America.
3) Addition to normal product line.
4) Repair to old machinery.

• A) 4, 3, 1, 2
• B) 1, 2, 3, 4
• C) 3, 4, 1, 2
• D) 4, 3, 2, 1

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, such as heart rate and digestion.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for quick action in emergencies; "fight or flight" response.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for rest and digestion, counterbalancing the sympathetic nervous system's fight or flight response.

Behavioral Observation

A method used in psychological research and practice where the actions or behaviors of subjects are watched and recorded.