Which of the Following Is the Definition of Political Risk

question 113

Multiple Choice

Which of the following is the definition of political risk?

• A) The possibility that changes in the corporation will occur that reduce the profitability of doing business in that country.
• B) The possibility that changes in the political environment will occur that reduce the profitability of doing business in that country.
• C) The possibility that changes in the business environment will occur that increase the profitability of doing business in that country.
• D) The possibility that international rules will occur that reduce the profitability of doing business in one particular country.

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Definitions:

Mutual Mistake

A situation where all parties to a contract have a shared misunderstanding about a fundamental fact of the agreement.

Material Effect

A significant impact or change to a business or financial situation, often requiring disclosure to stakeholders.

Agreement

An understanding or arrangement reached between two or more parties, either formally or informally.

Enforce

Refers to the act of compelling observance or compliance with a law, rule, or obligation.