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BUSA 364 (28)
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Department
Business Admin
Course
BUSA 364
Professor
Keith Laidley
Semester
Fall

Description
The three steps in risk management are o identification, evaluation, and response - Alpha Corp has discovered that one of its products is potentially dangerous. It therefore has purchased liability insurance. It has employed a form of risk management known as o risk shifting - Betta Inc has discovered that one of its products is potentially dangerous. It therefore pulled that product from the store shelves before any were sold. It has employed a form of risk management known as o risk avoidance - Gamma Co has discovered that one of its products is potentially dangerous. That danger, however, is not great. There is only a small chance that someone will be hurt, and even if someone is hurt, the injury will not be life-threatening. Gamma Co therefore has decided to do nothing about the danger. It has employed a form of risk management known as o none of the above - In an effort to increase sales, Delta Ltd hired Chandra, a marketing expert. Because Delta was concerned about being held responsible for any torts that Chandra might commit, it arranged to hire her as an independent contractor, rather than an employee. It has employed a form of risk management known as o risk shifting - Epsilon Inc has recently retained the services of Noriko as in-house counsel. Which of the following statements is most likely true? o Noriko can both help to resolve legal problems and help to prevent legal problems from arising in the first place - Which of the following statements is TRUE with respect to risk management and incorporation o Incorporation reduces the risk of liability because the doctrine of limited liability usually means that a corporation’s debts must be paid by the corporation and not by the people who run the corporation - Which of the following statements is TRUE with respect to exclusion clauses and risk management o An exclusion clause can be inserted into a contract for the sale of goods - Techniques for managing risks include o incorporation, insurance, and exclusion clauses - Red River Inc, which is based in Winnipeg, Manitoba, has sued a company called Eiffel Tours, which is based in Paris, France. That dispute will be decided by the "common law." That most
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