Choice "C" is correct. Self insuring or simply tolerating the full exposure to risk is known as acceptance.
Choice "b" is incorrect. A response to risk that involves disposal of a business unit, product line or geographical segment is called risk avoidance. Accepting risk as part of a business model does not represent avoidance.
Choice "a" is incorrect. A response to risk that involves diversification of product offerings, rather than elimination of product offerings, is called reduction. Accepting risk as part of a business model does not represent reduction.
Choice "d" is incorrect. Insuring against losses or entering into joint ventures to address risk is known as risk sharing. Accepting risk as part of a business model does not represent sharing.