Which of the Following Is an Example of a Risk

question 170

Multiple Choice

Which of the following is an example of a risk avoidance response?

• A) Buying an insurance policy to protect against loss events.
• B) Hedging against natural gas price fluctuations.
• C) Selling a non-strategic business unit.
• D) Outsourcing a high risk process to a third party.

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Definitions:

Hydromechanical Transmission

A combination of hydraulic and mechanical systems in a transmission to transfer power from the engine to the wheels.

Fourth Clutches

Clutches within an automatic transmission that engage and disengage the fourth gear, contributing to the vehicle's gear shifting process.

Reverse Output

The output or result that is in the opposite direction to what is expected or standard.

Planetary Gearsets

A gear system consisting of one or more outer gear rings (planet gears) rotating around a central sun gear, commonly used in automatic transmissions.