Below are four categories of risk and ways that a company is currently handling the risks….

Below are four categories of risk and ways that a company is currently handling the risks. According to Section 17.11, which risk handling options are being used? More than one answer may apply.

a. A company is handling its high R&D financial risk by taking on partners and hiring subcontractors. The partners/subcontractors are expected to invest some of their own funds in the R&D effort in exchange for sole-source, long-term production contracts if the product undergoes successful commercialization. b. A company has decided to handle its marketing risks by offering a family of products to its customer base. Different features exist for each product offered.

c. A company has product lines with a life expectancy of ten years or more. The company is handling its technical risks by performing extensive testing on new components and performing parallel technical development efforts for downstream enhancements.

d. A company has large manufacturing costs for its high-tech products. The company will not begin production until it has a firm commitment for a certain quantity. The company uses learning curves and project management to control its costs.