Risk Avoidance Is Attractive When the Cost of Avoidance Is

question 54

True/False

Risk avoidance is attractive when the cost of avoidance is less than the cost of handling it some other way.

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Definitions:

Purchase Price

The amount of money that is paid to acquire a good, service, or asset.

Discharged

Released from a legal obligation, duty, or liability.

Operation of Law

Changes in rights, duties, or obligations automatically enforced by the legal system without the need for action by the parties involved.

Condition Precedent

A condition in a contract that must be met before a party's promise becomes absolute.