The Project Team Is Not Comfortable Moving an Expensive Material

question 47

Multiple Choice

The project team is not comfortable moving an expensive material. A third party is hired to move the material. This is an example of risk:

• A) Transference
• B) Sharing
• C) Avoidance
• D) Acceptance

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Definitions:

Lessor

An entity or individual that leases an asset to a lessee, retaining ownership of the asset while granting usage rights for a specified period under agreed conditions.

Lessee

The party that is granted the right to use an asset for a specified period through a lease agreement.

Lessor

The party that rents out an asset or property to another party, known as the lessee.

Pre-tax Cost

The cost of an investment or financial activity before any taxes are applied.