All of the Following Are Elements of Market Risk in a Supply

question 45

Multiple Choice

All of the following are elements of market risk in a supply base except _____.

• A) the number of buyers competing for the same goods or source of supply
• B) increasingly shorter product life cycles
• C) regional political risk
• D) threat of emerging, often disruptive, technologies
• E) protecting and maintaining trade secrets and intellectual properties from misuse or misappropriation by suppliers, particularly those located overseas

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Definitions:

Fair Market Value

The price at which an asset would change hands between a willing buyer and a willing seller, both having reasonable knowledge of all relevant facts and neither being under compulsion to buy or sell.

Unrealized Increase

The increase in value of an asset that has not yet been sold or cashed in, thus not yet resulting in actual income.

Recognition

In accounting, recognition refers to the process of including an item in the financial statements of an entity, acknowledging it as an asset, liability, revenue, or expense.

Unrealized Holding

Refers to the increase or decrease in the value of an investment that has not yet been sold by the holder.