Which of the Following Is NOT One of the Commonly

question 21

Multiple Choice

Which of the following is NOT one of the commonly used general risk management techniques?

• A) Reduce risk
• B) Assume risk
• C) Shift risk
• D) Avoid risk
• E) Increase risk

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Definitions:

C Corporation

A legal structure for a corporation where the owners, or shareholders, are taxed separately from the entity.

Sole Proprietorship

A business structure in which one individual owns all of the company's assets, is responsible for its debts, and reports its business income on their personal tax return.

Non-Profit

An organization dedicated to furthering a particular social cause or advocating for a shared point of interest and does not distribute its surplus funds to owners or shareholders.

Personal Use

The use of a property or item by the owner or their family for non-business and non-rental purposes, affecting the tax implications of expenses related to the property or item.