Question

Sometimes the risks posed by a project are deemed unacceptably large compared to the potential benefits, and the ultimate avoidance strategy is to not perform the project at all. (True/False)

Answer 1

True.

Step-by-step explanation:

In assessment of risk, a firm can employ the use of cost benefit analysis to determine it risk acceptability or avoidance. This can simply be explained as; if the cost of accepting the risk is higher than the benefit/returns from such risk the project is deemed to be rejected.