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

---

Definitions:

Personal Property Tax

Taxes imposed on movable properties, such as vehicles and equipment, as opposed to real estate.

Deductible

An expense that can be subtracted from gross income to reduce the amount of income subject to tax, often related to business expenses, healthcare costs, and certain individual deductions.

Itemized Deduction

Deductions from income that taxpayers can claim for specific expenses, as opposed to taking a standard deduction.

Home Equity Indebtedness

Debt secured by a qualified residence that exceeds the acquisition indebtedness, with interest on such debt often being deductible under U.S. tax law.