A Manufacturing Firm Identified That It Would Have Difficulty Sourcing

question 43

Multiple Choice

A manufacturing firm identified that it would have difficulty sourcing raw materials locally,so it decided to relocate its production facilities.According to COSO,this decision represents which of the following response to the risk?

• A)Risk reduction.
• B)Prospect theory.
• C)Risk sharing.
• D)Risk acceptance.

---

Definitions:

Scattering of Light Rays

The process by which light rays are deflected in various directions by particles in their path, affecting how light is perceived.

Pigment Loss

The reduction or absence of melanin or other pigments in the skin, hair, or eyes, which can be hereditary or due to conditions like vitiligo.

Anterior Chamber

Chamber of the eye between the cornea and the iris.

Posterior Chamber

The fluid-filled space between the iris and the lens of the eye, containing aqueous humor.