Which of the Following Statements About Risk Is True

question 65

Multiple Choice

Which of the following statements about risk is true?

• A)Risk occurs when the costs or benefits of an event or choice are uncertain.
• B)It explains why the changing value of money is such a challenge.
• C)Risk should always be avoided, at any cost.
• D)None of these statements are true.

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Definitions:

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Usable Form

A state in which information or data is organized and formatted in such a way that it can be easily understood and utilized by its intended users.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.

Total Debt

The sum of all financial obligations a company or individual owes to outside parties, which can include loans, bonds, mortgages, and other forms of debt.