Which of the Following Statements About the Risk Reduction Is

question 43

Multiple Choice

Which of the following statements about the risk reduction is correct?

• A) When the probability distribution is non-normal, risk cannot be reduced by increasing the pool size.
• B) After the pool size has reached 36, risk can no longer be reduced any further.
• C) Risk is reduced as the pool size increases.
• D) All of the above are correct.

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Definitions:

Narrow Span

a management structure where a supervisor oversees a small number of subordinates, allowing for close supervision and control.

Organizational Complexity

relates to the various interconnected components within an organization, including its structure, processes, and dynamics that determine its level of intricacy.

Mechanistic Structure

A highly formal organizational structure characterized by rigid hierarchy, clear divisions of labor, and centralized decision-making.

Decentralization

The distribution of decision-making powers from a central authoritative location or group across various levels or sectors within an organization.