Which of the Following Statements About Financial Risks Is Not

question 59

Multiple Choice

Which of the following statements about financial risks is not true?

• A) Many financial risks are attributable to fluctuations in value.
• B) Financial risks arise from events that prevent a firm from conducting its normal scope of operations.
• C) An example of a financial risk is one associated with unfavorable credit rating.
• D) Price risks associated with input costs are a form of financial risk.

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Definitions:

Redemption Story

A narrative framework where a person describes their life story in terms of moving from a difficult or low point to a higher, more positive state.

Minimal Deterrence

Use of the minimal level of external justification necessary to deter unwanted behavior.

External Justification

The process of explaining one's behavior with reasons outside of the individual, often to align with societal norms or expectations.

Undesirable Behavior

Actions or conduct deemed inappropriate or unacceptable based on societal norms or individual standards.