Which of the Following Venture Is Riskiest

question 43

Multiple Choice

Which of the following venture is riskiest?

• A)Starting up a store to sell improved versions of existing surfboards.
• B)Starting a business to sell the first motorized surfboard.
• C)Setting up a store to sell fireworks.
• D)Buying an existing skydiving school.

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Definitions:

Non-monetary Assets

Assets that are not in the form of cash or cannot be easily converted to cash, such as property, plant, and equipment.

Spot Rate

The current price in the foreign exchange market at which one currency can be exchanged for another currency.

Closing Rate

The closing rate is the exchange rate of a foreign currency against a home currency at the close of the accounting period, used in translating foreign currency financial statements.

Forward Rate

The agreed-upon future exchange rate between two currencies in a forward contract.