Which One of the Following Is NOT True of Risk

question 9

Multiple Choice

Which one of the following is NOT True of risk?

• A) It includes the length of time the asset will be unavailable for other uses.
• B) It includes the probability that the strategy will be effective.
• C) Managers who own a significant amount of stock in their firms are less likely to engage in risk-taking actions.
• D) It includes the amount of assets the corporation must allocate to that strategy.
• E) The greater the assets involved, the more likely top management is to demand a high probability of success.

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Definitions:

Employee Leasing

A practice where businesses hire their workers through a third-party, transferring the administrative responsibility of employees, such as payroll and benefits, to the leasing firm.

Outsourcing

The practice of hiring external companies or individuals to perform tasks, handle operations or provide services that are either difficult to manage or are outside the business's core competencies.

Offshoring

The practice of relocating business processes or services to another country, often to take advantage of lower labor costs or favorable regulatory environments.

Cost Reduction

Strategies or measures implemented to lower expenses and improve efficiency within an organization or project.