The Michelson Bank of Stetson,wants to Protect Itself from Risk

question 86

Multiple Choice

The Michelson Bank of Stetson,wants to protect itself from risk.It decides to make loans in Florida,Georgia,Texas,and Oklahoma as well as invest in municipal bonds from California and Oregon.What defense against risk is this bank making?

• A)Portfolio diversification
• B)Geographic diversification
• C)Quality management
• D)Increasing owners' capital
• E)None of the options is correct.

Know the strategies for creating competitive advantages.

Understand the new marketing landscape, including the rise of metamarkets and the challenges of electronic commerce.

Appreciate the importance of ethics and social responsibility in marketing.

Understand the fundamental conditions and concepts of exchange in marketing.

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Definitions:

Infant Mortality

The failure rate early in the life of a product or process.

Normal Distribution

A probability distribution which is even around the mean, indicating that data points closer to the mean occur more frequently than those further away from the mean.

Maintenance

The process of preserving equipment, machines, buildings, or systems through routine checkups, repairs, and replacements to ensure they remain in a safe and functional condition.

Redundant Part

A backup component or section in machinery, systems, or products, designed to take over in case the primary part fails.