All of the following statements about avoidance are true EXCEPT
A)Certain loss exposures are never acquired.
B)Certain loss exposures may be abandoned.
C)The chance of loss for certain loss exposures may be reduced to zero.
D)It can be used for any loss exposure facing a firm.

Question

Quizplus · Accepted Answer

Avoidance may not always be a feasible option for all loss exposures. An organization may face certain risks that are critical to its operations and cannot be avoided. In such cases, the organization has to devise other risk management strategies to reduce the impact of the risk. Therefore, it cannot be used for any loss exposure facing a firm.

All of the Following Statements About Avoidance Are True EXCEPT