Operational Risk Comes from a Firm's

question 17

Multiple Choice

Operational risk comes from a firm's:

• A) inability to document the work remote employees do.
• B) realization that its vendors may have different incentives than the client.
• C) inability to change its business strategy to acquire another company.
• D) realization that the firm cannot build a lifestyle around its product.

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Definitions:

Office Equipment

Items and machinery used in an office to assist in tasks and operations, such as computers, printers, and furniture.

Profit Made

The revenue remaining after all expenses have been deducted from total sales.

Derivative Action

A lawsuit brought by a corporation's shareholder on behalf of the company against a third party, often for breach of fiduciary duty.

Shareholder

An individual or entity that owns shares in a company, giving them a claim on part of its assets and earnings.