Solved: An entrepreneur keeps backup funds in a savings account

By Ian Brian on May 5, 2023

Question:

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?

A. Reducing risk

B. Sharing risk

C. Avoiding risk

D. Maximizing risk.

Answer:

A. Reducing risk

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Ian Brian

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