Which of the Following Questions Should One Ask When Developing

question 75

Multiple Choice

Which of the following questions should one ask when developing a risk management plan?

• A) What do I need to insure?
• B) How much should I insure something for?
• C) What kind of insurance should I buy?
• D) Whom should I buy insurance from?
• E) All of these questions should be asked when developing a risk management plan.

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Definitions:

Working Capital Decision

The process of managing the short-term assets and liabilities of a firm to ensure it operates efficiently and can meet its obligations.

Capital Expenditure

Funds spent by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Working Capital Management

Planning and managing the firm’s current assets and liabilities.

Inventory

Raw materials, work-in-progress, and finished goods that are considered assets and intended for sale in the ordinary course of business.