Starting a Small Business That May or May Not Succeed

question 100

Multiple Choice

Starting a small business that may or may not succeed is an example of ________ risk.

• A)speculative
• B)pure
• C)commercial
• D)personal
• E)liability

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Definitions:

Diversification

A strategy used to reduce risk by allocating investments among various financial instruments, industries, or other categories.

Merger Strategy

A corporate strategy involving the combination of two or more companies into a single entity, aiming to achieve synergy, expand market share, or improve efficiency.

Counteroffer

A proposal made in response to a previous offer, typically with adjustments to the terms in negotiation scenarios.

Hostile Takeover

A bid to acquire a company against the wishes of the company's management and board of directors.