Which of the Following Statements Regarding Risk Avoidance Is True

question 18

Multiple Choice

Which of the following statements regarding risk avoidance is true?

• A)Risk avoidance is any activity that helps evade an act that creates a risk.
• B)Risk avoidance is any activity that increases the chance that a loss will occur.
• C)Risk avoidance is any activity that lessens the severity of loss once it occurs.
• D)Risk avoidance is an act that reduces the probability that a loss will occur.
• E)Risk avoidance is an effective way to handle small exposures to loss when insurance is too expensive.

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Definitions:

Billing Procedures

The methods and processes used by businesses, including law firms, to charge for services rendered and manage client accounts.

New Technology

Refers to the latest advancements or inventions in the field of science and engineering that are being introduced into the market or society.

Performance Evaluations

The assessment process of an employee's job performance, usually conducted on a regular basis like annually or semi-annually.

Raises

Increases in salary or wages given to employees to reward performance, adjust for inflation, or acknowledge their tenure with the company.