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Which correctly reflects the order of post-loss objectives

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Reference no: EM132995927

Problem 1: MLX Drug Company would like to market a new hypertension drug. While the FDA was testing the drug, it discovered that the drug produced a harmful side effect. When MLX learned of the FDA's test result, MLX abandoned its plan to produce and distribute the drug. MLX's reaction illustrates which of the following?

A. Risk avoidance
B. Hedging
C. Risk transfer
D. Risk retention

Problem 2: Which of the following correctly reflects the order of post-loss objectives (from most important to least important)?

A. Survival of the firm, continuation of operations, stability of earnings, continued growth, social responsibility
B. Social responsibility, continued growth, continuation of operations, stability of earnings, survival of the firm
C. Survival of the firm, continued growth, continuation of operations, stability of earnings, survival of the firm
D. Continuation of operations, continued growth, survival, stability of earnings, social responsibility

Reference no: EM132995927

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