Which of the Following Is Not True of Risk

question 50

Multiple Choice

Which of the following is not true of risk?

• A) It includes the length of time the asset will be unavailable for other uses.
• B) It includes the probability that the strategy will be effective.
• C) Managers who own a significant amount of stock in their firms are less likely to engage in risk-taking actions.
• D) It includes the amount of assets the corporation must allocate to that strategy.
• E) The greater the assets involved, the more likely top management is to demand a high probability of success.

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Definitions:

Placebo Effect

A phenomenon whereby patients experience a perceived or actual improvement in their condition due solely to the belief in the efficacy of the treatment, regardless of its actual therapeutic value.

Right To Privacy

The legal or ethical principle that protects individuals from unwarranted intrusion into their personal life and affairs.

Sexual Deviance

Behaviors or desires that deviate from societal norms or expectations regarding sexuality.

Socially Desirable Responding

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, potentially skewing survey or research results.