Explanation/Reference:
The Domain Name Service is a distributed database system that is used to map domain names to IP addresses and IP addresses to domain names.
The Domain Name System is maintained by a distributed database system, which uses the client-server model. The nodes of this database are the name servers. Each domain has at least one authoritative DNS server that publishes information about that domain and the name servers of any domains subordinate to it. The top of the hierarchy is served by the root nameservers, the servers to query when looking up (resolving) a TLD.
Reference(s) used for this question:
KRUTZ, Ronald L & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, 2001, John Wiley & Sons, Page 100.
and
https://en.wikipedia.org/wiki/Domain_Name_System

Explanation/Reference:
The common steps used the the development of security policy are initiation of the project, evaluation, development, approval, publication, implementation, and maintenance. The other choices listed are the phases of the software development life cycle and not the step used to develop ducuments such as Policies, Standards, etc...
Reference: TIPTON, Harold F. & KRAUSE, MICKI, Information Security Management Handbook, 4th Edition, Volume 3, 2002, Auerbach Publications.

Explanation/Reference:
Terminology can be confusing between the different souces as both CBK and AIO3 call an application layer firewall a proxy and proxy servers are generally classified as either circuit-level proxies or application level proxies.
The distinction is that a circuit level proxy creates a conduit through which a trusted host can communicate with an untrusted one and doesn't really look at the application contents of the packet (as an application level proxy does). SOCKS is one of the better known circuit-level proxies.
Firewalls
Packet Filtering Firewall - First Generation
n Screening Router
n Operates at Network and Transport level
n Examines Source and Destination IP Address
n Can deny based on ACLs
n Can specify Port
Application Level Firewall - Second Generation
n Proxy Server
n Copies each packet from one network to the other
n Masks the origin of the data
n Operates at layer 7 (Application Layer)
n Reduces Network performance since it has do analyze each packet and decide what to do with it.
n Also Called Application Layer Gateway
Stateful Inspection Firewalls - Third Generation
n Packets Analyzed at all OSI layers
n Queued at the network level
n Faster than Application level Gateway
Dynamic Packet Filtering Firewalls - Fourth Generation
n Allows modification of security rules
n Mostly used for UDP
n Remembers all of the UDP packets that have crossed the network's perimeter, and it decides whether to enable packets to pass through the firewall.
Kernel Proxy - Fifth Generation
n Runs in NT Kernel
n Uses dynamic and custom TCP/IP-based stacks to inspect the network packets and to enforce security policies.
"Current level firewall" is incorrect. This is an amost-right-sounding distractor to confuse the unwary.
"Cache level firewall" is incorrect. This too is a distractor.
"Session level firewall" is incorrect. This too is a distractor.
References
CBK, p. 466 - 467
AIO3, pp. 486 - 490
CISSP Study Notes from Exam Prep Guide

Explanation/Reference:
An algorithm that turns messages or text into a fixed string of digits, usually for security or data management purposes. The "one way" means that it's nearly impossible to derive the original text from the string.
A one-way hash function is used to create digital signatures, which in turn identify and authenticate the sender and message of a digitally distributed message.
A cryptographic hash function is a deterministic procedure that takes an arbitrary block of data and returns a fixed-size bit string, the (cryptographic) hash value, such that an accidental or intentional change to the data will change the hash value. The data to be encoded is often called the "message," and the hash value is sometimes called the message digest or simply digest.
The ideal cryptographic hash function has four main or significant properties:
it is easy (but not necessarily quick) to compute the hash value for any given message it is infeasible to generate a message that has a given hash
it is infeasible to modify a message without changing the hash
it is infeasible to find two different messages with the same hash
Cryptographic hash functions have many information security applications, notably in digital signatures, message authentication codes (MACs), and other forms of authentication. They can also be used as ordinary hash functions, to index data in hash tables, for fingerprinting, to detect duplicate data or uniquely identify files, and as checksums to detect accidental data corruption. Indeed, in information security contexts, cryptographic hash values are sometimes called (digital) fingerprints, checksums, or just hash values, even though all these terms stand for functions with rather different properties and purposes.
Source:
TIPTON, Hal, (ISC)2, Introduction to the CISSP Exam presentation.
and
http://en.wikipedia.org/wiki/Cryptographic_hash_function

Which means the company understands the level of risk it is faced.
The following answers are incorrect because :
Reject the risk is incorrect as it means ignoring the risk which is dangerous.
Perform another risk analysis is also incorrect as the existing risk analysis has already
shown the results.
Reduce the risk is incorrect is applicable after implementing the countermeasures.
Reference : Shon Harris AIO v3 , Chapter-3: Security Management Practices , Page : 39