Which One of the Following Is Most Apt to Be

question 173

Multiple Choice

Which one of the following is most apt to be a nondiversifiable risk?

• A) A fire at a petroleum refinery.
• B) An airline pilot's strike.
• C) A sudden increase in inflation.
• D) A shortage of peaches cane due to a hail storm.
• E) A lawsuit arising from faulty refrigeration units.

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Definitions:

Liabilities

Financial obligations or debts a company owes to external parties.

Cash

Liquid assets held by an entity that can be immediately used for transactions.

Ex-dividend Date

The specific date on which shares of a company stop coming with the right to receive the most recently declared dividend, usually set two trading days before the record date.

Record Date

The specified date on which a company determines its shareholders' eligibility to receive dividends or the right to participate in corporate actions.