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Read the following four passages and answer the items that follow each passage. Your answers to these items should be based on the passage only.Farmers make decisions in a risky, ever changing environment. The consequences of their decisions are generally not known when the decisions are made, and outcomes may be better or worse than expected. Variability of prices and yields are major sources of risk in agriculture. Changes in technology, legal and social concerns, and the human factor itself also contribute to the risky environment for farmers. Risky situations of concern are typically those in which either there is a high possibility of adverse consequences and or the adverse consequences, should they occur, would cause significant disruptions.Farmers and other business people generally do not get into risky situations unless there is a probability of making money. Higher profits are typically associated with higher risks. It is to their advantage that these risky but potentially profitable situations be managed as carefully as possible. Effective risk management involves anticipating possible difficulties and planning to reduce their consequences, not just reacting to unfavourable events after they occur. The two primary aspects of risk management are: 1) anticipating that an unfavourable event may occur and acting to reduce the probability of its occurrence and 2) taking actions which will reduce the adverse consequences should the unfavourable event occur.For example, risk management in the machinery area might involve a complete overhaul of an old tractor before the busy season to reduce the chances of a major breakdown. Also, during planting and harvesting, most farmers keep some key spare parts readily available. While the spare parts do not prevent a breakdown from occurring, the unfavorable consequences are reduced.Some responses to risk, like hedging, may narrow the range of possible outcomes. With hedging, a farmer gives up the chance of a very high price, but is protected from a low price. Other risk responses, like insurance, may involve paying a premium to eliminate the consequences of a ``bad'' event. All of the responses to risk involve a cost, whether explicit like the insurance premium or implicit like the possible high price given up. A risk management strategy is developed using a variety of the available responses to risk.Q. According to the passage, risk management is important in order to:a)maximize profitsb)minimize lossesc)manage businessesd)subvert competitione)None of theseCorrect answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Read the following four passages and answer the items that follow each passage. Your answers to these items should be based on the passage only.Farmers make decisions in a risky, ever changing environment. The consequences of their decisions are generally not known when the decisions are made, and outcomes may be better or worse than expected. Variability of prices and yields are major sources of risk in agriculture. Changes in technology, legal and social concerns, and the human factor itself also contribute to the risky environment for farmers. Risky situations of concern are typically those in which either there is a high possibility of adverse consequences and or the adverse consequences, should they occur, would cause significant disruptions.Farmers and other business people generally do not get into risky situations unless there is a probability of making money. Higher profits are typically associated with higher risks. It is to their advantage that these risky but potentially profitable situations be managed as carefully as possible. Effective risk management involves anticipating possible difficulties and planning to reduce their consequences, not just reacting to unfavourable events after they occur. The two primary aspects of risk management are: 1) anticipating that an unfavourable event may occur and acting to reduce the probability of its occurrence and 2) taking actions which will reduce the adverse consequences should the unfavourable event occur.For example, risk management in the machinery area might involve a complete overhaul of an old tractor before the busy season to reduce the chances of a major breakdown. Also, during planting and harvesting, most farmers keep some key spare parts readily available. While the spare parts do not prevent a breakdown from occurring, the unfavorable consequences are reduced.Some responses to risk, like hedging, may narrow the range of possible outcomes. With hedging, a farmer gives up the chance of a very high price, but is protected from a low price. Other risk responses, like insurance, may involve paying a premium to eliminate the consequences of a ``bad'' event. All of the responses to risk involve a cost, whether explicit like the insurance premium or implicit like the possible high price given up. A risk management strategy is developed using a variety of the available responses to risk.Q. According to the passage, risk management is important in order to:a)maximize profitsb)minimize lossesc)manage businessesd)subvert competitione)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the following four passages and answer the items that follow each passage. Your answers to these items should be based on the passage only.Farmers make decisions in a risky, ever changing environment. The consequences of their decisions are generally not known when the decisions are made, and outcomes may be better or worse than expected. Variability of prices and yields are major sources of risk in agriculture. Changes in technology, legal and social concerns, and the human factor itself also contribute to the risky environment for farmers. Risky situations of concern are typically those in which either there is a high possibility of adverse consequences and or the adverse consequences, should they occur, would cause significant disruptions.Farmers and other business people generally do not get into risky situations unless there is a probability of making money. Higher profits are typically associated with higher risks. It is to their advantage that these risky but potentially profitable situations be managed as carefully as possible. Effective risk management involves anticipating possible difficulties and planning to reduce their consequences, not just reacting to unfavourable events after they occur. The two primary aspects of risk management are: 1) anticipating that an unfavourable event may occur and acting to reduce the probability of its occurrence and 2) taking actions which will reduce the adverse consequences should the unfavourable event occur.For example, risk management in the machinery area might involve a complete overhaul of an old tractor before the busy season to reduce the chances of a major breakdown. Also, during planting and harvesting, most farmers keep some key spare parts readily available. While the spare parts do not prevent a breakdown from occurring, the unfavorable consequences are reduced.Some responses to risk, like hedging, may narrow the range of possible outcomes. With hedging, a farmer gives up the chance of a very high price, but is protected from a low price. Other risk responses, like insurance, may involve paying a premium to eliminate the consequences of a ``bad'' event. All of the responses to risk involve a cost, whether explicit like the insurance premium or implicit like the possible high price given up. A risk management strategy is developed using a variety of the available responses to risk.Q. According to the passage, risk management is important in order to:a)maximize profitsb)minimize lossesc)manage businessesd)subvert competitione)None of theseCorrect answer is option 'B'. Can you explain this answer?.

Solutions for Read the following four passages and answer the items that follow each passage. Your answers to these items should be based on the passage only.Farmers make decisions in a risky, ever changing environment. The consequences of their decisions are generally not known when the decisions are made, and outcomes may be better or worse than expected. Variability of prices and yields are major sources of risk in agriculture. Changes in technology, legal and social concerns, and the human factor itself also contribute to the risky environment for farmers. Risky situations of concern are typically those in which either there is a high possibility of adverse consequences and or the adverse consequences, should they occur, would cause significant disruptions.Farmers and other business people generally do not get into risky situations unless there is a probability of making money. Higher profits are typically associated with higher risks. It is to their advantage that these risky but potentially profitable situations be managed as carefully as possible. Effective risk management involves anticipating possible difficulties and planning to reduce their consequences, not just reacting to unfavourable events after they occur. The two primary aspects of risk management are: 1) anticipating that an unfavourable event may occur and acting to reduce the probability of its occurrence and 2) taking actions which will reduce the adverse consequences should the unfavourable event occur.For example, risk management in the machinery area might involve a complete overhaul of an old tractor before the busy season to reduce the chances of a major breakdown. Also, during planting and harvesting, most farmers keep some key spare parts readily available. While the spare parts do not prevent a breakdown from occurring, the unfavorable consequences are reduced.Some responses to risk, like hedging, may narrow the range of possible outcomes. With hedging, a farmer gives up the chance of a very high price, but is protected from a low price. Other risk responses, like insurance, may involve paying a premium to eliminate the consequences of a ``bad'' event. All of the responses to risk involve a cost, whether explicit like the insurance premium or implicit like the possible high price given up. A risk management strategy is developed using a variety of the available responses to risk.Q. According to the passage, risk management is important in order to:a)maximize profitsb)minimize lossesc)manage businessesd)subvert competitione)None of theseCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.

Here you can find the meaning of Read the following four passages and answer the items that follow each passage. Your answers to these items should be based on the passage only.Farmers make decisions in a risky, ever changing environment. The consequences of their decisions are generally not known when the decisions are made, and outcomes may be better or worse than expected. Variability of prices and yields are major sources of risk in agriculture. Changes in technology, legal and social concerns, and the human factor itself also contribute to the risky environment for farmers. Risky situations of concern are typically those in which either there is a high possibility of adverse consequences and or the adverse consequences, should they occur, would cause significant disruptions.Farmers and other business people generally do not get into risky situations unless there is a probability of making money. Higher profits are typically associated with higher risks. It is to their advantage that these risky but potentially profitable situations be managed as carefully as possible. Effective risk management involves anticipating possible difficulties and planning to reduce their consequences, not just reacting to unfavourable events after they occur. The two primary aspects of risk management are: 1) anticipating that an unfavourable event may occur and acting to reduce the probability of its occurrence and 2) taking actions which will reduce the adverse consequences should the unfavourable event occur.For example, risk management in the machinery area might involve a complete overhaul of an old tractor before the busy season to reduce the chances of a major breakdown. Also, during planting and harvesting, most farmers keep some key spare parts readily available. While the spare parts do not prevent a breakdown from occurring, the unfavorable consequences are reduced.Some responses to risk, like hedging, may narrow the range of possible outcomes. With hedging, a farmer gives up the chance of a very high price, but is protected from a low price. Other risk responses, like insurance, may involve paying a premium to eliminate the consequences of a ``bad'' event. All of the responses to risk involve a cost, whether explicit like the insurance premium or implicit like the possible high price given up. A risk management strategy is developed using a variety of the available responses to risk.Q. According to the passage, risk management is important in order to:a)maximize profitsb)minimize lossesc)manage businessesd)subvert competitione)None of theseCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Read the following four passages and answer the items that follow each passage. Your answers to these items should be based on the passage only.Farmers make decisions in a risky, ever changing environment. The consequences of their decisions are generally not known when the decisions are made, and outcomes may be better or worse than expected. Variability of prices and yields are major sources of risk in agriculture. Changes in technology, legal and social concerns, and the human factor itself also contribute to the risky environment for farmers. Risky situations of concern are typically those in which either there is a high possibility of adverse consequences and or the adverse consequences, should they occur, would cause significant disruptions.Farmers and other business people generally do not get into risky situations unless there is a probability of making money. Higher profits are typically associated with higher risks. It is to their advantage that these risky but potentially profitable situations be managed as carefully as possible. Effective risk management involves anticipating possible difficulties and planning to reduce their consequences, not just reacting to unfavourable events after they occur. The two primary aspects of risk management are: 1) anticipating that an unfavourable event may occur and acting to reduce the probability of its occurrence and 2) taking actions which will reduce the adverse consequences should the unfavourable event occur.For example, risk management in the machinery area might involve a complete overhaul of an old tractor before the busy season to reduce the chances of a major breakdown. Also, during planting and harvesting, most farmers keep some key spare parts readily available. While the spare parts do not prevent a breakdown from occurring, the unfavorable consequences are reduced.Some responses to risk, like hedging, may narrow the range of possible outcomes. With hedging, a farmer gives up the chance of a very high price, but is protected from a low price. Other risk responses, like insurance, may involve paying a premium to eliminate the consequences of a ``bad'' event. All of the responses to risk involve a cost, whether explicit like the insurance premium or implicit like the possible high price given up. A risk management strategy is developed using a variety of the available responses to risk.Q. According to the passage, risk management is important in order to:a)maximize profitsb)minimize lossesc)manage businessesd)subvert competitione)None of theseCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Read the following four passages and answer the items that follow each passage. Your answers to these items should be based on the passage only.Farmers make decisions in a risky, ever changing environment. The consequences of their decisions are generally not known when the decisions are made, and outcomes may be better or worse than expected. Variability of prices and yields are major sources of risk in agriculture. Changes in technology, legal and social concerns, and the human factor itself also contribute to the risky environment for farmers. Risky situations of concern are typically those in which either there is a high possibility of adverse consequences and or the adverse consequences, should they occur, would cause significant disruptions.Farmers and other business people generally do not get into risky situations unless there is a probability of making money. Higher profits are typically associated with higher risks. It is to their advantage that these risky but potentially profitable situations be managed as carefully as possible. Effective risk management involves anticipating possible difficulties and planning to reduce their consequences, not just reacting to unfavourable events after they occur. The two primary aspects of risk management are: 1) anticipating that an unfavourable event may occur and acting to reduce the probability of its occurrence and 2) taking actions which will reduce the adverse consequences should the unfavourable event occur.For example, risk management in the machinery area might involve a complete overhaul of an old tractor before the busy season to reduce the chances of a major breakdown. Also, during planting and harvesting, most farmers keep some key spare parts readily available. While the spare parts do not prevent a breakdown from occurring, the unfavorable consequences are reduced.Some responses to risk, like hedging, may narrow the range of possible outcomes. With hedging, a farmer gives up the chance of a very high price, but is protected from a low price. Other risk responses, like insurance, may involve paying a premium to eliminate the consequences of a ``bad'' event. All of the responses to risk involve a cost, whether explicit like the insurance premium or implicit like the possible high price given up. A risk management strategy is developed using a variety of the available responses to risk.Q. According to the passage, risk management is important in order to:a)maximize profitsb)minimize lossesc)manage businessesd)subvert competitione)None of theseCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Read the following four passages and answer the items that follow each passage. Your answers to these items should be based on the passage only.Farmers make decisions in a risky, ever changing environment. The consequences of their decisions are generally not known when the decisions are made, and outcomes may be better or worse than expected. Variability of prices and yields are major sources of risk in agriculture. Changes in technology, legal and social concerns, and the human factor itself also contribute to the risky environment for farmers. Risky situations of concern are typically those in which either there is a high possibility of adverse consequences and or the adverse consequences, should they occur, would cause significant disruptions.Farmers and other business people generally do not get into risky situations unless there is a probability of making money. Higher profits are typically associated with higher risks. It is to their advantage that these risky but potentially profitable situations be managed as carefully as possible. Effective risk management involves anticipating possible difficulties and planning to reduce their consequences, not just reacting to unfavourable events after they occur. The two primary aspects of risk management are: 1) anticipating that an unfavourable event may occur and acting to reduce the probability of its occurrence and 2) taking actions which will reduce the adverse consequences should the unfavourable event occur.For example, risk management in the machinery area might involve a complete overhaul of an old tractor before the busy season to reduce the chances of a major breakdown. Also, during planting and harvesting, most farmers keep some key spare parts readily available. While the spare parts do not prevent a breakdown from occurring, the unfavorable consequences are reduced.Some responses to risk, like hedging, may narrow the range of possible outcomes. With hedging, a farmer gives up the chance of a very high price, but is protected from a low price. Other risk responses, like insurance, may involve paying a premium to eliminate the consequences of a ``bad'' event. All of the responses to risk involve a cost, whether explicit like the insurance premium or implicit like the possible high price given up. A risk management strategy is developed using a variety of the available responses to risk.Q. According to the passage, risk management is important in order to:a)maximize profitsb)minimize lossesc)manage businessesd)subvert competitione)None of theseCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Read the following four passages and answer the items that follow each passage. Your answers to these items should be based on the passage only.Farmers make decisions in a risky, ever changing environment. The consequences of their decisions are generally not known when the decisions are made, and outcomes may be better or worse than expected. Variability of prices and yields are major sources of risk in agriculture. Changes in technology, legal and social concerns, and the human factor itself also contribute to the risky environment for farmers. Risky situations of concern are typically those in which either there is a high possibility of adverse consequences and or the adverse consequences, should they occur, would cause significant disruptions.Farmers and other business people generally do not get into risky situations unless there is a probability of making money. Higher profits are typically associated with higher risks. It is to their advantage that these risky but potentially profitable situations be managed as carefully as possible. Effective risk management involves anticipating possible difficulties and planning to reduce their consequences, not just reacting to unfavourable events after they occur. The two primary aspects of risk management are: 1) anticipating that an unfavourable event may occur and acting to reduce the probability of its occurrence and 2) taking actions which will reduce the adverse consequences should the unfavourable event occur.For example, risk management in the machinery area might involve a complete overhaul of an old tractor before the busy season to reduce the chances of a major breakdown. Also, during planting and harvesting, most farmers keep some key spare parts readily available. While the spare parts do not prevent a breakdown from occurring, the unfavorable consequences are reduced.Some responses to risk, like hedging, may narrow the range of possible outcomes. With hedging, a farmer gives up the chance of a very high price, but is protected from a low price. Other risk responses, like insurance, may involve paying a premium to eliminate the consequences of a ``bad'' event. All of the responses to risk involve a cost, whether explicit like the insurance premium or implicit like the possible high price given up. A risk management strategy is developed using a variety of the available responses to risk.Q. According to the passage, risk management is important in order to:a)maximize profitsb)minimize lossesc)manage businessesd)subvert competitione)None of theseCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CAT tests.