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Sean recently started a small consulting practice. Sean is the only employee of the business and the sole generator of revenue. Sean is very concerned that in the event that he becomes disabled due to an accident or disease there will be no revenue coming into the business. Which one of the following goals best identify Sean's concerns?

A. Legality and profitability
B. Social responsibility and earnings stability
C. Economy of risk management operations
D. Tolerable uncertainty and earnings stability

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Final answer:

The goal that best identifies Sean's concerns is D. Tolerable uncertainty and earnings stability. Sean is concerned about the lack of revenue in the event of his disability and wants to ensure earning stability.

Step-by-step explanation:

The goal that best identifies Sean's concerns is D. Tolerable uncertainty and earnings stability. This goal addresses the need for business owners to manage and mitigate risks in order to ensure a steady flow of income, even in the face of unpredictable events such as disability due to accident or disease.

Sean's concern about the lack of revenue in the event of his disability is related to the concept of economy of risk management operations. By considering and planning for potential risks, Sean can take steps to protect his business and ensure its continued financial stability.

Furthermore, Sean's concern is related to the goal of earning stability. He wants to ensure that his business can continue generating revenue, even in his absence, in order to meet his own needs and provide for his family. By implementing strategies for earning stability, such as insurance or contingency plans, Sean can mitigate the impact of a disability on his business.

User Tejesh Alimilli
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