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?\n- reducing risk.\n- sharing risk.\n- avoiding risk.\n- 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?\n- reducing risk.\n- sharing risk.\n- avoiding risk.\n- maximizing risk.

Answer

Brief Explanations:

The entrepreneur is setting aside funds to deal with potential losses. Reducing risk involves taking steps to lower the impact of negative events. Sharing risk is about distributing it with others, avoiding risk means not engaging in risky activities, and maximizing risk is the opposite of what's needed here. By having backup funds, the entrepreneur is reducing the impact of a potential business - loss.

Answer:

A. reducing risk