The Three Elements of Risk That Help in Understanding Differences

question 84

Multiple Choice

The three elements of risk that help in understanding differences across firms and changes over time in ROAs are:

• A) product life cycles, cyclicality of sales, competitive constraint.
• B) operating leverage, cyclicality of sales, product life cycles.
• C) cyclicality of sales, competitive constraint, operating leverage.
• D) operating leverage, competitive constraint, product life cycles.

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Definitions:

New Market

A new market refers to the introduction or discovery of new sectors, customer groups, or geographic areas where a business or product has not previously engaged or sold.