Which of the Following Is Not Characteristic of Good Risk

question 97

Multiple Choice

Which of the following is not characteristic of good risk management?

• A)estimating the likelihood of chance events occurring
• B)planning to eliminate chance events
• C)identifying potential chance events
• D)formulating contingency plans for chance events
• E)analyzing the consequences of chance events

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.

Average Costs

Total costs (fixed and variable) divided by the total quantity of output produced, representing the cost per unit of production on average.

Variable Costs

Costs that change in proportion to the good or service that a business produces.