AutoPROs Recalled Thousands of Tires When Several People Died in Traffic

question 1

Multiple Choice

AutoPROs recalled thousands of tires when several people died in traffic accidents blamed on faulty tires. This is an example of which of the following?

• A) avoiding the risk
• B) self-insuring against the risk
• C) reducing the risk
• D) a loss-prevention program

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Definitions:

Discretion

Discretion refers to the freedom to decide what should be done in a particular situation, often involving judgment and the choice to act or not act.

Visibility

The degree to which an individual's actions, position, or status can be seen and recognized by others, influencing perceptions and opportunities.

Substitutability

The extent to which one product, service, or input can replace another in usage, offering an alternative choice to consumers or producers.

Legitimate Power

The authority that an individual or group possesses as a result of their role or position within an organization or society.