The Likelihood That a Society Will Undergo Governmental Changes That

question 20

Multiple Choice

The likelihood that a society will undergo governmental changes that negatively affect local business activity is known as ________.

• A)volatility risk
• B)systemic risk
• C)political risk
• D)credit risk

---

Definitions:

Credit Agency

An organization that evaluates and rates the creditworthiness of individuals or corporations.

Incremental Cash Inflow

Additional cash received as a result of undertaking an investment or project.

Net 30 Credit Policy

A payment term that indicates that the payment for goods or services is due 30 days from the invoice date.

Monthly Interest Rate

The interest rate applied to a loan or debt for a one-month period.