Which of the Following Can Be Seen as the Greatest

question 14

Multiple Choice

Which of the following can be seen as the greatest non-business threat to investment and must be taken into account as an active constraint in any investment decision?

• A) Threats of regulatory change and unclear application of regulations.
• B) Competitors creating new and innovative products.
• C) Trade unions forcing companies to pay a higher salary.
• D) All of the above.

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Definitions:

Foreign Exchange Risk

The possibility of losing value due to fluctuations in currency exchange rates affecting international financial transactions.

Exchange Rates

The price of one currency in terms of another for conversion purposes.

Canadian Dollars

The official currency of Canada, often symbolized as CAD, which is used for all financial transactions within the country.

Accounts Receivable

Accounts receivable is the money owed to a business by its clients or customers for goods or services that have been delivered or used but not yet paid for.