​Which of the Following Is True of a Residual Risk

question 49

Multiple Choice

​Which of the following is true of a residual risk?

• A) ​A residual risk is a risk that exists absent of any risk management action to reduce or avoid the risk.
• B) ​A residual risk is a risk that can be avoided by enacting some particular procedure to decrease the residual risk to a lower inherent risk level.
• C) A residual risk is a risk that remains after any risk management action has been taken.
• D) ​A residual risk is the probability or likelihood of a risk occurring multiplied by the impact should it actually occur.

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Definitions:

Break-Even Analysis

A financial calculation to determine the volume of production or sales at which total revenues will equal total costs.

Unit Variable Expense

Costs that vary directly with the production of one unit of a product or service.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain and all fixed costs are covered.

Selling Price

The amount of money charged for a product or service, which can influence demand and revenue.