Which One of the Following Will Best Reduce the Risk

question 85

Multiple Choice

Which one of the following will best reduce the risk of a project by lowering the degree of operating leverage?

• A)hiring temporary workers from an employment agency rather than hiring part-time production employees
• B)subcontracting portions of the project rather than purchasing new equipment to do all the work in-house
• C)leasing equipment on a long-term basis rather than buying equipment
• D)lowering the projected selling price per unit
• E)changing the proposed labor-intensive production method to a more capital intensive method

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Definitions:

Dose-Response Relationship

The relationship between the quantity of a drug or other exposure and the magnitude of the effect it has on an organism.

Predictive Validity

The extent to which a test or measurement can accurately forecast or predict future outcomes or behaviors.

Criterion Validity

The extent to which a test's results correlate with other measures or outcomes that are already accepted as reflecting the variable being tested.

Epidemiological

Relating to the study of the distribution and determinants of health and diseases in populations.