Which One of the Following Is an Example of a Nondiversifiable

question 211

Multiple Choice

Which one of the following is an example of a nondiversifiable risk?

• A) A well-respected president of a firm suddenly resigns.
• B) A well-respected governor of the Bank of Canada suddenly resigns.
• C) A key employee of a firm suddenly resigns and accepts employment with a key competitor.
• D) A well-managed firm reduces its work force and automates several jobs.
• E) A poorly managed firm suddenly goes out of business due to lack of sales.

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Definitions:

Transportation Problem

A type of optimization issue in operations research that involves determining the most cost-efficient routing of goods from several suppliers to various destinations.

Optimal Solution

The most efficient and effective answer or outcome achievable in a mathematical model or problem-solving scenario.

Origins

The point or place where something begins or is derived, often referring to the historical context or source of an object, idea, or movement.

Destinations

Final points or locations where goods or individuals are intended to go or be delivered.