Which Component of the ERM Framework Is Best Described Here

question 39

Multiple Choice

Which component of the ERM framework is best described here: Internal and external events affecting achievement of an entity's objectives must be identified, distinguishing between risks and opportunities. Opportunities are channeled back to management's strategy or objective-setting processes.

• A) control activities
• B) event identification
• C) risk assessment
• D) risk response

---

Definitions:

Marginal Cost Curves

graphical representations that show how the cost of producing one additional unit of a good or service varies with the quantity produced.

Price Taker

A price taker is a firm or individual who has no power to influence the prices in a market, taking the prevailing prices as given.

Short-Run Supply Curve

A graphical representation showing the quantity of goods a firm is willing to produce and sell at different price levels in the short term.

Marginal Cost

The expenditure required to produce one more unit of a product or service.