John owns a small department store that issues its own credit cards. He has been considering phasing out his own credit card and accepting only cash. If John chooses to do this he will be going from a position of risk _ to one of risk _.

Question

Quizplus · Accepted Answer

By initially offering credit cards, John assumes the risk of credit default or fraud. Switching to only accepting cash avoids these risks, hence moving from risk assumption to risk avoidance.

John Owns a Small Department Store That Issues Its Own