You Work as a Risk Management Advisor for Sigma Ltd

question 58

Multiple Choice

You work as a risk management advisor for Sigma Ltd.Sigma Ltd intends to place a new type of widget on the market.It wants to know what steps it should take with respect to warning people about the dangers associated with that type of widget.Which of the following statements is TRUE?

• A)Sigma Ltd only needs to issue a warning to people who purchase widgets.
• B)Sigma Ltd only needs to issue a warning with respect to dangers that it is aware of before the widgets are sold.
• C)Sigma Ltd only needs to issue a warning with respect to dangers that arise when a widget is used for its intended purpose.
• D)Sigma Ltd is not required to warn about every possible danger that it knows about when a widget is sold.The warning must be reasonable.
• E)As the manufacturer, Sigma Ltd is the only party that could be required to issue a warning.

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Definitions:

Cost-Benefit Analysis

A systematic approach to estimate the strengths and weaknesses of alternatives, assessing the value of costs and benefits to support decision-making.

Paired-Choice Majority Votes

A voting method in which voters choose between pairs of candidates or options, with the majority preference deciding the outcome.

Paradox of Voting

The situation where individual rationality does not lead to collective rationality, suggesting that the cost of voting outweighs the apparent benefits.

Median-Voter Model

A theoretical model suggesting that the outcome of majority rule voting systems will reflect the preferences of the median voter.