Which of the Following Is Not an Example of a Speculative

question 66

Multiple Choice

Which of the following is not an example of a speculative risk?

• A)purchase of an insurance policy
• B)investment in common stocks
• C)operating a business for profit
• D)investment in banana futures

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Definitions:

Support Department Allocations

The process of distributing indirect costs from support departments to producing departments based on relevant allocation bases.

Operating Income

Operating income is the amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold.

Departmental Expenses

are costs that are directly incurred by a specific department within an organization and are typically allocated directly to that department.

Direct Operating

Expenses directly associated with the day-to-day operations of a business, such as costs for materials and labor used in producing goods or services.