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:

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Process

A process involves a series of actions or steps taken in order to achieve a particular end.

Outcome

The result or consequence of an action, experiment, or other proceeding.

Collection

The process of gathering data or items together, often for the purpose of analysis or to make sense of a set of findings.