Which of the Following Statements Is NOT True About Risk

question 1

Multiple Choice

Which of the following statements is NOT true about risk as it affects companies' choice of locations for foreign operations?

• A)Companies and their managers differ in their perception of what is risky.
• B)One company's risk may be another company's opportunity.
• C)There are means to reduce risk other than avoiding locations.
• D)Companies choose the cheapest location regardless of risks.

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Definitions:

Budgeted Fixed Selling

Budgeted fixed selling refers to the predetermined set of expenses associated with selling a product that do not change with sales volume.

Estimated Cost

A forecast or approximation of the expenses associated with a project, product, or service.

Goods Sold

The total number of products or services that a company sells during a specific period.

Cash Balance

The amount of cash held by a company at a given point in time.