组合

问题如下：

The choice of risk-modification method is based on:

选项：

A.

minimizing risk at the lowest cost.

B.

maximizing returns at the lowest cost.

C.

weighing costs versus benefits in light of the entity’s risk tolerance.

解释：

C  is correct.

Among the risk-modification methods of risk avoidance, risk acceptance, risk transfer, and risk shifting none has a clear advantage. One must weigh benefits and costs in light of the firm’s risk tolerance when choosing the method to use.