Bill Is the Project Manager of the JKH Project

question 161

Multiple Choice

Bill is the project manager of the JKH Project. He and the project team have identified a risk event in the project with a high probability of occurrence and the risk event has a high cost impact on the project. Bill discusses the risk event with Virginia, the primary project customer, and she decides that the requirements surrounding the risk event should be removed from the project. The removal of the requirements does affect the project scope, but it can release the project from the high risk exposure. What risk response has been enacted in this project?

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

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Definitions:

Net Investment

The total amount spent on purchasing fixed assets less any disposals, also considering adjustments for depreciation or impairments.

Unreimbursable Costs

Unreimbursable costs are expenses incurred by a party that cannot be recovered through billing or other forms of payment from clients or customers.

Sales-Type Lease

A sales-type lease is a type of lease where the lessor recognizes profits from the selling price of the leased asset and interest income from the financing, distinguished from an operating lease.

Guaranteed Residual Value

The predetermined value at which a lessee can buy a leased asset at the end of the lease term, as guaranteed by the lessee or a third party.