Which of the Following Risk Management Objectives Would Be Strongly

question 47

Multiple Choice

Which of the following risk management objectives would be strongly supported by the use of a limitation of liability clause in a contract?

• A) It reduces the liability for the risk and is legally enforceable.
• B) It transfers the risk,is legally enforceable,and is acceptable to the other party.
• C) It eliminates the risk,limits the liability,and is acceptable the other party.
• D) It retains a standard form of contractual of limited liability.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, reflecting its decrease in value over time.

Cash Dividends

Payments made by a corporation to its shareholders out of its profits or reserves.

Investing Activities

Financial activities related to buying or selling long-term assets and investments, a key component of a company’s cash flow statement.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowing of the company.