an entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they…

an entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. what type of risk management is this an example of?\no reducing risk.\no sharing risk.\no avoiding risk.\no maximizing risk.

an entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. what type of risk management is this an example of?\no reducing risk.\no sharing risk.\no avoiding risk.\no maximizing risk.

Answer

Answer:

reducing risk.

Brief Explanations:

By keeping backup funds, the entrepreneur lessens potential negative impacts of business losses, which is risk - reduction.