Evidence of Xenophobia, Nepotism, Corruption, Uneven Distributions of Wealth, Numbers

question 17

Multiple Choice

Evidence of xenophobia, nepotism, corruption, uneven distributions of wealth, numbers of linguistic, ethnic, religious factions and the numbers and powers of political parties or power groups are primary causes of which type of risk:

• A) Economic risks
• B) Political risks
• C) Operations risks
• D) Financial risks

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Definitions:

Budgetary Slack

The practice of underestimating revenues or overestimating expenses when preparing a budget to create a buffer for unexpected scenarios.

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe existing state or future outcomes, often affecting decision-making processes.

Budgeted Profit and Loss Statement

A financial statement forecasting the revenue, expenses, and profit for a future period, based on management's estimates.

Operating Expenses

Ongoing expenses for operating a business, excluding the cost of goods sold but including costs like rent, utilities, and payroll.