________________ Involves Answering Three Questions: (1) What Adverse Events Could

question 7

Multiple Choice

________________ involves answering three questions: (1) What adverse events could happen? (2) What is the probability of these events happening? and (3) What is the financial impact if these events occur?

• A) Contingency planning
• B) Risk mitigation
• C) Loss prevention
• D) Risk monitoring
• E) Risk assessment

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Definitions:

Rebate

A return of part of the original payment for some service or merchandise, serving as a discount or reduction after the purchase.

Void Contract

refers to an agreement with no legal effect from the beginning due to an illegal purpose or violation of a mandatory statute.

Voidable Contract

A legal agreement that is valid and enforceable on its face, but can be declared void by one or more of the parties for certain legal reasons.

Contract Formation

The process by which parties' agreement reaches the point where a legally binding contract is established.