Which One of the Following Is Most Likely a Direct

question 95

Multiple Choice

Which one of the following is most likely a direct material?

• A)sawdust used to soak up spills in a paint factory
• B)Lubricants for factory machinery
• C)paper used in the photocopy machine in the sales office
• D)circuit boards in a computer

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Definitions:

Diversifiable Risks

Risks that can be reduced or eliminated from a portfolio through diversification.

Unique Risks

Unique risks refer to the specific and individual risks that affect only a particular company, security, or investment sector, as opposed to risks that affect the entire market.

Unsystematic Risk

The risk associated with a specific company or industry, which can be reduced through diversification.

Asset-specific Risk

Refers to the risk affecting an investment's value that is associated with the particular assets the investment owns, distinct from marketwide risks.