which of the following describes risk avoidance? a.) a business pays another company to take the risk…

which of the following describes risk avoidance? a.) a business pays another company to take the risk involved with performing a certain activity. b.) a business identifies the risks that could occur and takes steps to minimize their negative impact. c.) a business knows it must take a risk and assumes the costs involved with the activity. d.) a business engages in a different activity so that it does not incur any risk.

which of the following describes risk avoidance? a.) a business pays another company to take the risk involved with performing a certain activity. b.) a business identifies the risks that could occur and takes steps to minimize their negative impact. c.) a business knows it must take a risk and assumes the costs involved with the activity. d.) a business engages in a different activity so that it does not incur any risk.

Answer

Brief Explanations:

Risk - avoidance means completely steering clear of a risk - prone activity by choosing an alternative that has no risk. Option a is risk - transfer, b is risk - mitigation, and c is risk - acceptance. Option d describes a business changing its activity to avoid risk.

Answer:

d. A business engages in a different activity so that it does not incur any risk.