Which of the Following Statements Regarding Risk Avoidance Is True

question 28

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 many types of potentially small exposures to loss when insurance would be too expensive.

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Definitions:

Coupons

Vouchers or codes that offer consumers a discount or rebate when purchasing a product or service.

Federal Trade Commission

A U.S. government agency responsible for protecting consumers and enforcing antitrust law to ensure fair competition in the marketplace.

Pure Monopoly

A market structure where a single company is the sole provider of a product or service, facing no direct competition.

Market Share

The proportion of total sales in a market or industry attributed to a specific company during a defined time frame.