Ranking Asks the Respondent to Estimate the Magnitude or the Extent

question 26

True/False

Ranking asks the respondent to estimate the magnitude or the extent to which some characteristic exists.

---

Definitions:

Risk

The exposure to the chance of loss or adverse outcomes in decision-making and financial investments, varying in likelihood and potential impact.

Uncertainty

The lack of certainty or predictability in the outcome of an event, often affecting decision-making and financial projections.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Transactional Approach

An accounting method focusing on recording individual business transactions and their impact on the financial statements.