Responding to an Unforeseen Threat That You Either Did Not

question 33

Multiple Choice

Responding to an unforeseen threat that you either did not have a planned response for or has not been dealt with effectively by implementing your planned response is best described as a(n)

• A)Mitigation plan.
• B)Contingency.
• C)Workaround.
• D)Transference.

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Definitions:

Accrue

The process of recording expenses and revenues that have been incurred or earned, respectively, but not yet received or paid, in order to reflect the true financial position of an entity.

Estimated Loss

An anticipated loss that a company might suffer due to various risks and uncertainties, and which is accounted for in advance.

Appropriation

The allocation or setting aside of funds by a company for a specific purpose or the restriction of retained earnings distributed to shareholders.

Inventory Finance

A line of credit or loan specifically intended to help businesses purchase inventory, often secured by the inventory itself.