____ Is the Warning Flag for When to Implement the Action

question 25

Multiple Choice

____ is the warning flag for when to implement the action plan for the risk.

• A) The action trigger
• B) The priority order
• C) The mitigation plan
• D) The degree of impact

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Definitions:

Average Daily Float

The average amount of uncollected funds in a company's bank account, representing checks issued but not yet cleared.

Average Daily Float

Average daily float refers to the average amount of uncollected funds in a company's bank account, essentially representing checks that have been issued but not yet cleared.

Lockbox System

A service offered by banks to companies for the collection of payments from customers, involving the customers sending their payments to a special post office box.

Net Present Value

A technique utilized in the process of capital budgeting to assess an investment's profitability by determining the difference between the present value of cash inflows and outflows.