When Organizations Adopt Security Measures for a Legal Defense, They

question 9

Multiple Choice

When organizations adopt security measures for a legal defense, they may need to show that they have done what any prudent organization would do in similar circumstances. This is referred to as __________.

• A) baselining
• B) best practices 
• C) benchmarking
• D) standards of due care

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Definitions:

Efficient Scale

The level of production that minimizes the average total cost of producing a good or service. It represents the most cost-effective point of operation for a business.

Maximum Profit

The highest possible profit a firm can achieve when it has optimized its production and sales, given the constraints of the market.

Long-Run Adjustment

The process through which inputs and outputs fully adjust to changes in the market, considering all potential variable and fixed costs.

Zero Profit

A situation where a firm's total revenue is exactly equal to its total costs, resulting in no net profit.