Choice "C" is correct. A response to risk that involves the disposal of a business unit, product line, or geographical segment is called risk avoidance. When Able sells all of its businesses in Florida, the company eliminates its exposure to named storms that hit Florida.
Choice "d" is incorrect. A response to risk that involves the diversification of product offerings rather than the elimination of product offerings is called reduction. Leaving the state is avoidance, not reduction.
Choice "a" is incorrect. Insuring against losses or entering into joint ventures to address risk is known as risk sharing. Leaving the state is avoidance, not sharing.
Choice "b" is incorrect. Self insuring or simply tolerating full exposure to risk is known as acceptance. Leaving the state is not acceptance of risk.