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NEW QUESTION 20
Portobello is an Italian manufacturing company that produces canned tomato sauces. It imports a lot of its tomatoes from Latin America as there isn’t the capacity to grow that many tomatoes in Italy. One of the major risks posing Portobello is that the tomatoes must be transported via cargo ship, and there is a risk that the ship may sink, or be delayed by bad weather. Portobello has taken out insurance to cover the cost of the tomatoes should this happen. What technique has Portobello used?

  • A. terminate
  • B. treat
  • C. transfer
  • D. tolerate

Answer: C

Explanation:
Explanation
The risk has been transferred to the insurance company. This question is based on the 4Ts from p.32- this is a popular exam topic, for both the multiple choice questions and the drag and drop

 

NEW QUESTION 21
Which of the following is an example of hedging?

  • A. dual-sourcing
  • B. audits
  • C. insurance
  • D. risk assessments

Answer: C

Explanation:
Explanation
Insurance is a form of hedging. Hedging is using a financial instrument to offset the potential risk of an adverse loss (p.93) none of the other options mentioned are financial instruments.

 

NEW QUESTION 22
Which of the following will you put into box 5?

  • A. NDA
  • B. Conformance Specification
  • C. service credits
  • D. Force Majeure

Answer: A

Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated

 

NEW QUESTION 23
Jan is a chef who has created a new type of curry. She is worried that another chef may steal her curry recipe so is wanting to protect this. Which type of IP protection should Jan take out?

  • A. copywrite
  • B. trademark
  • C. patent
  • D. trade secret

Answer: D

Explanation:
Explanation
Trade secrets are used for recipes- they’re suitable for confidential information that gives an organisation a competitive edge. For a detailed explanation of the four types of IP cover see p. 64 of the study guide

 

NEW QUESTION 24
Which of the following is an example of hedging?

  • A. dual-sourcing
  • B. audits
  • C. insurance
  • D. risk assessments

Answer: C

Explanation:
Explanation
Insurance is a form of hedging. Hedging is using a financial instrument to offset the potential risk of an adverse loss (p.93) none of the other options mentioned are financial instruments.

 

NEW QUESTION 25
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