Each of the Following Is a Benefit of Practicing Risk

question 13

Multiple Choice

Each of the following is a benefit of practicing risk management by companies except

• A)companies can manage risk better than their shareholders
• B)risk management can avoid bankruptcy costs
• C)risk management can lower taxes
• D)risk management can increase employment opportunities
• E)risk management can help prevent companies from passing up valuable investment opportunities

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Definitions:

Capital Resources

Assets used in the production of goods and services, such as buildings, machinery, equipment, and tools.

Profit Maximization

The process or strategy aimed at achieving the highest possible profits within a business operation.

Economic Resources

Assets or inputs used for the production of goods and services, typically categorized into land, labor, capital, and entrepreneurship.

Marginal Product

Marginal product is the additional output generated by using one more unit of a particular input while keeping other inputs constant.