Which of the Following Strategies Does Not Reduce Risk

question 54

Multiple Choice

Which of the following strategies does not reduce risk?

• A) building flexibility into the firm's operations
• B) increasing the proportion of the firm's costs that are fixed
• C) taking out an insurance policy
• D) hedging with derivative contracts

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Definitions:

Stereotypes

Oversimplified and fixed images or ideas about specific groups of people that may not reflect their actual diversity or complexity.

Labor Problem

Challenges and issues related to the workforce, including disputes over wages, working conditions, and labor rights.

Low Wages

Compensation for work performed that is considered lower than the average or fair market value, often leading to financial insecurity for the worker.

Unsafe Working Conditions

Workplace environments that pose potential risks to the health and safety of employees, often violating safety standards and regulations.