Kevin Brown Rides His Bicycle to Work So That He

question 95

Multiple Choice

Kevin Brown rides his bicycle to work so that he doesn't have to worry about getting in a car accident. How is Kevin managing his risk?

• A) Avoidance
• B) Reduction
• C) Assumption
• D) Shifting
• E) Creation

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Definitions:

Finance Department

A corporate sector tasked with overseeing financial operations, risk management, and strategic planning related to finance.

Dividends

Dividends are payments made by a corporation to its shareholder members, usually extracted from the company's earnings.

Selling Stock

The process of offering shares of a company's capital to investors in exchange for capital, diluting ownership but potentially raising funds for growth.

S-type Corporation

A special designation that allows corporations to pass corporate income, credits, and deductions directly to their shareholders for federal tax purposes.