A Risk That Affects Only Individuals or Small Groups and Not

question 54

Multiple Choice

A risk that affects only individuals or small groups and not the entire economy is called a

• A)diversifiable risk.
• B)pure risk.
• C)speculative risk.
• D)nondiversifiable risk.

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Definitions:

Unissued Shares

Unissued Shares are portions of a company's authorized capital stock that have been authorized for issuance but have not yet been issued to shareholders.

Treasury Stock

Shares that were once part of the open market stock but were bought back by the issuing company, reducing the amount of outstanding stock.

Quorum

The minimum number of members required to be present at a meeting to make the proceedings of that meeting valid.

Shareholder Agreement

A contract among shareholders of a company outlining their rights, obligations, and mutual agreements regarding company operations and governance.