A Company Determines That It Is Prohibitively Expensive to Become

question 859

Multiple Choice

A company determines that it is prohibitively expensive to become compliant with new credit card regulations. Instead, the company decides to purchase insurance to cover the cost of any potential loss. Which of the following is the company doing?

• A) Transferring the risk
• B) Accepting the risk
• C) Avoiding the risk
• D) Migrating the risk

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Definitions:

Erosion

The process of gradual wearing down or destruction of something, often referring to natural processes affecting land or material objects.

Rapid-Growth Firms

Companies that experience a significantly high rate of growth in revenue, size, or market share over a short period.

Power And Control

The ability to influence or direct people's behavior and the course of events.

Leadership

The ability to guide, direct, or influence people toward achieving a common goal or mission with competence and integrity.