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:

Principle Amount

The original sum of money borrowed in a loan or put into an investment.

Time

A continuous, measurable quantity in which events occur in a sequence from the past through the present to the future.

Simple Interest

Interest computed on the original sum of a loan or deposit, not including the effects of compounding throughout the duration.

Simplification

The process of reducing a mathematical expression or equation to its simplest form.