Which of the Following Statements Is Incorrect

question 54

Multiple Choice

Which of the following statements is incorrect?

• A) Part of a company's credit policy considers how much credit a customer should be granted.
• B) Cost-benefit analysis can be used to evaluate an investment of a back-up computer centre or outsource the back-up to an outside centre provider.
• C) After identification of all of its risk exposure an organisation must seek to remove all these risks.
• D) Procedural controls of a risk management strategy documents all the products that can be used by the organisation.

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Definitions:

Scarcity

The basic economic issue arises from unlimited human desires facing limited resources on the planet.

Free Lunch

A term that implies you cannot get something for nothing, often used in the context that every choice has a cost.

Fallacy Of Inductive Reasoning

The fallacy of inductive reasoning occurs when a conclusion is drawn from insufficient evidence or from specific instances that do not reliably lead to a general conclusion.

Post Hoc, Ergo Propter Hoc

A logical fallacy where it is assumed that because one event followed another, the first event was the cause of the second.