Rather than storing all of its finished goods in a single location,Davis Company divides the finished goods between two warehouses.This simple risk control technique which is designed to limit losses should a warehouse fire occur is called
A)duplication.
B)risk transfer.
C)separation.
D)loss prevention.

Question

Quizplus · Accepted Answer

The risk control technique described in the question is separation, where the finished goods are divided between two warehouses to limit losses in case of a warehouse fire. Duplication refers to having backup systems or processes in place, risk transfer involves transferring the risk to another party through insurance or contractual agreements, and loss prevention refers to measures taken to prevent losses from occurring in the first place. None of these accurately describe the technique used by Davis Company.

Rather Than Storing All of Its Finished Goods in a Single