Which of the Following Is NOT a Diversifiable Risk

question 57

Multiple Choice

Which of the following is NOT a diversifiable risk?

• A) the risk that oil prices rise, increasing production costs
• B) the risk that the CEO is killed in a plane crash
• C) the risk of a product liability lawsuit
• D) the risk of a key employee being hired away by a competitor

---

Definitions:

Linguistics

The scientific study of language and its structure, including the study of morphology, syntax, phonetics, and semantics.

Communication Theory

An area of study that examines how information is transmitted between individuals and the efficiency and effectiveness of those processes.

Analogy Heuristic

An analogy heuristic is a mental shortcut that allows individuals to solve problems and make judgments quickly by finding similarities between the current situation and past experiences.

Means-End Analysis

A problem-solving strategy that involves breaking down a problem into smaller problems and solving each one to reach an overall goal.