Which Type of Risk Management Strategy Is a Company Using

question 89

Multiple Choice

Which type of risk management strategy is a company using when it installs mirrors and surveillance cameras to spot and prevent shoplifting?

• A) avoiding the risk
• B) insuring against the risk
• C) assuming the risk
• D) reducing the risk

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Definitions:

Rule 10b-5

A regulation under the SEC that prohibits any act or omission resulting in fraud or deceit in connection with the purchase or sale of any security.

Security Definition

A term referring to measures or protocols implemented to protect against unauthorized access, theft, or damage to information, buildings, or individuals.

Perpetual Existence

A legal concept indicating that a corporation can continue indefinitely, regardless of changes in ownership or management.

Charitable Donations

Financial or material contributions given to nonprofit organizations or causes for philanthropic purposes.