Operations Risk Is the Likelihood of a Disruption That Would

question 24

True/False

Operations risk is the likelihood of a disruption that would impact the ability of a company to continuously supply products or services.

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Definitions:

Accounting Profits

Accounting profits refer to the net earnings of a company as calculated by subtracting total expenses from total revenues, using standard accounting principles.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, indicating the profitability of a company beyond basic accounting measures.

Economic Losses

Financial losses that occur when the cost of production exceeds the revenue generated from sales.

Total Output

The total quantity of goods or services produced by a firm or economy in a given period.