What Does Strategic Risk Involve

question 11

Multiple Choice

What does strategic risk involve?

• A) The risk that a new product won't be developed within the desired time and budget.
• B) The risk of not matching the role or purpose of a new product with a specific strategic need or issue of the organization.
• C) The risk that a new product won't meet a market need in a value-added, differentiated way.
• D) The risk of environmental influences such as natural disasters that inhibit the functioning of the firm.

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Definitions:

Physical Substance

A characteristic referring to tangible assets which have a physical form and presence, as opposed to intangible assets like patents or copyrights.

Intangible Assets

Non-physical assets that have a value to the company, such as intellectual property, brand recognition, and goodwill.

Current Liabilities

Short-term financial obligations a company owes and is expected to pay within one year or within its operating cycle.

Current Assets

Current assets refer to all assets that a company expects to convert into cash or use up within one year or its operating cycle, whichever is longer, including cash, inventory, and accounts receivable.