Question
A company has decided to store their inventory in two locations so that it can avoid business interruption in case of a fire. What type
A company has decided to store their inventory in two locations so that it can avoid business interruption in case of a fire. What type of loss control is indicated in this scenario?
- A. Separation
- B. Diversification
- C. Duplication
- D. Loss prevention
Linda Doby is opening a new restaurant in her home town. The risk associated with whether she will make a profit or not is an example of which of the following?
- A. Pure risk
- B. Speculative risk
- C. Objective risk
- D. Physical risk
Select the answer that best completes the following statement. ________________ is a measure that reduces the frequency of a loss, while ________________ is a measure that reduces the severity of a loss.
- A. Risk control, risk financing
- B. Loss prevention, loss reduction
- C. Loss reduction, risk control
- D. Loss reduction, loss prevention
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Financial Management Principles And Practices
Authors: Sudhindra Bhat
2nd Edition
8174465863, 978-8174465863
