Which of the Following Relations Correctly Describes Total Risk

question 233

Multiple Choice

Which of the following relations correctly describes total risk?

• A) Total Risk = Threats x Vulnerability x Asset Value
• B) Total Risk = Viruses x Vulnerability x Asset Value
• C) Total Risk = Threats x Exploit x Asset Value
• D) Total Risk = Viruses x Exploit x Asset Value

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Definitions:

Cannibalization

The situation where a new product eats into the sales of one of the company's existing products, potentially reducing overall sales.

Net Present Value (NPV)

A valuation method used to assess the profitability of an investment by calculating the present value of expected future cash flows minus the initial investment cost.

Externality

A consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices, often considered as either positive or negative.

Capital Cost Allowance (CCA)

A tax deduction available in Canada for depreciable property that can be used to reduce taxable income.