A Senior Manager Conducts Five Seminars to Review the Company's

question 25

Multiple Choice

A senior manager conducts five seminars to review the company's legal risk management policy revisions with employees. Concerns raised during this process are sent in a memorandum to the department head. What activity and corresponding step in the legal risk management process is this?

• A) evaluating potential risk; third step
• B) reducing risk; second step
• C) implementing, monitoring and revising; final step
• D) carrying out the plan; third step

---

Definitions:

Operating Cycles

The period of time it takes for a business to purchase or create inventory, sell the products, and collect cash from the sales.

Undiscounted Cash Flows

Cash flows that have not been adjusted for the time value of money, representing the gross amount of cash that is expected to be generated over time.

Historical Cost

Historical cost refers to the original monetary value of an asset for accounting purposes, not taking into account inflation adjustments or current market values.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and put into use.