________ Is the Risk Associated with the Potential for the Employees

question 74

Multiple Choice

________ is the risk associated with the potential for the employees or operations of the firm to be threatened by changes in laws, environmental standards, tax codes, and terrorism.

• A) Transfer risk
• B) Ownership risk
• C) Operating risk
• D) Exchange rate risk

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Definitions:

Relativistic Thinking

Recognition that judgments are often not absolute but made from a certain belief system or cultural background.

Conventional Thinking

A mode of thought based on accepted norms and standards, often contrasted with creative or critical thinking approaches.

Transitivity

A principle in logic and mathematics stating that if a relation holds between a first and a second element, and also between the second and a third, it must necessarily hold between the first and the third.

Conservation

The act of preserving, protecting, or restoring the natural environment and wildlife.