Explain Two Ways That Someone May Choose to Manage Risk

question 1

Essay

Explain two ways that someone may choose to manage risk.Include an example of each method.

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Definitions:

Dividends

Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits.

Contingent Consideration

An obligation to transfer additional assets or equity interests to the former owners of an acquired business if future events occur or conditions are met.

Business Combinations

Transactions or events in which an acquirer obtains control over one or more businesses.

Acquisition

The process by which one company takes control over another company, either through direct purchase, merger, or management control.