Which of the Following Is Not an Example of a Speculative

question 14

Multiple Choice

Which of the following is not an example of a speculative risk?

• A) Purchase of an insurance policy
• B) Investment in common stocks
• C) Operating a business for profit
• D) Investment in banana futures

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Definitions:

Decision Model

A framework or guideline designed to facilitate the making of business decisions through systemic analysis and evaluation.

Collecting Data

The process of gathering information or facts from various sources for analysis, which can then be used for making informed decisions or developing strategies.

Accounting Information System

A system of collecting, storing, and processing financial and accounting data that is used by decision makers.

Relevant

Pertains to information or factors that are directly related to the decision-making process.