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An organization's board has approved an expansion plan into a new market.

An organization's board has approved an expansion plan into a new market. The board acknowledged that if the expansion is not successful, the organization would encounter large monetary losses consisting of legal fees, research and development costs, rent expenses, and labor fees. Which of the following has the board approved?

A.

The risk response.

B.

The risk tolerance.

C.

The residual risk.

D.

The inherent risk.

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