Author Question: MLX Drug Company would like to market a new hypertension drug. While the Food and Drug ... (Read 616 times)

littleanan · **on:** Jul 11, 2018

MLX Drug Company would like to market a new hypertension drug. While the Food and Drug Administration (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
A) risk avoidance.
B) hedging.
C) risk transfer.
D) risk retention.

Question 2

Ben is concerned that if he injures someone or damages someone's property he could be held legally responsible and required to pay damages. This type of risk is called a

A) speculative risk.
B) liability risk.
C) nondiversifiable risk.
D) property risk.