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Test: CPA Business Environment and Concepts (BEC)
1. | A company owns and operates multiple businesses in the Caribbean. Management has identified interruptions in normal operations as a potential risk resulting from storm damage caused by hurricanes. Recognizing this, the company decides to treat the potential damage as part of its business model. The company's response to this potential risk is known as: |
Avoidance
Acceptance
Reduction
Sharing
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