What Is the First Step in the Risk-Management Process

question 125

Multiple Choice

What is the first step in the risk-management process?

• A)Evaluate the potential losses that might result.
• B)Administer the risk-management program.
• C)Identify sources of risk.
• D)Decide on the best way(s) to handle risk and losses.

Understand the inclusion of specific transactions in the general ledger under a perpetual inventory system.

Identify the correct method of recording sales and the use of the MasterCard or VISA in accounting.

Comprehend the different components of the income statement and their relationship with net income.

Understand the basic differences between merchandising and service businesses in terms of financial statements.

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Definitions:

Type A

A behavior pattern characterized by competitiveness, urgency, aggression, and impatience, which is associated with stress and heart disease.

Type B

refers to a personality type characterized by less competitive, more relaxed, and less easily stressed attitudes than Type A.

Hostility

A state of antagonism, anger, or aggression toward others, which can manifest in both emotional and behavioral aspects.

Impatience

A lack of patience; irritation with anything that causes delay.