Which of the Following Statements Is True Regarding Organizations with Self-Contained

question 22

Multiple Choice

Which of the following statements is true regarding organizations with self-contained units (SCU) for risk-management?

• A)The SCU has final authority on risk assessment and uses information from employees with similar expertise at the division-level.
• B)It works independently and information flows only between the SCU and headquarters.
• C)The organization chart depicts a strong relation between the division-level employees who have information on risk and the SCU.
• D)Employees with knowledge of division level-risks are transferred to the SCU.

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Definitions:

Shareholder Action

Activities taken by stockholders to influence corporate governance, policies, or management, often through voting or lawsuits.

Management Buyout

A management buyout is a transaction where a company's existing managers acquire a significant portion or all of the company from its owners.

Cash-Out Combination

A financial strategy involving the refinance of a mortgage by taking out a loan that is larger than the existing one, providing the borrower with cash from the equity built up in the property.

Fairness

implies impartial and just treatment or behavior without favoritism or discrimination.