Ch 3 - Managing Legal Risks Flashcards
1
Q
legal risk
A
business risk with legal implications
2
Q
legal risk management plan
A
comprehensive action plan for dealing with legal risks involved in operating a business
3
Q
risk avoidance
A
ceasing a business activity because the legal risk is too great
4
Q
risk reduction
A
implementing practices in a business to lower the probability of loss and its severity
5
Q
risk transference
A
shifting the risk to someone else through a contract
6
Q
risk retention
A
absorbing the loss if a legal risk materializes
7
Q
lawyer
A
person who is legally qualified to practice law
8
Q
law firm
A
partnership formed by lawyers
