Which of the Following Is a Financial Risk That May

question 39

Multiple Choice

Which of the following is a financial risk that may be faced by a business organization?

• A)injuries suffered by employees at the workplace
• B)lost income after a fire loss
• C)product liability risk
• D)currency exchange rate risk

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Definitions:

Ceilings For Earnings

Limits set on the amount of income that can be considered for certain calculations, such as social security or pension benefits.

Defined Contribution

A type of retirement plan where the employer, employee, or both make contributions on a regular basis, but the final benefits received depend on the investment's performance.

Defined Benefit

A type of pension plan where the benefits that an employee will receive upon retirement are predefined based on factors like salary and tenure.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee's future benefit.