Which of the Following Statements About the Various Kinds of Risk

question 58

Multiple Choice

Which of the following statements about the various kinds of risk is true?

• A)Interest rate risk and inflation risk are diversifiable risks.
• B)Economic risk and political risk are systematic risks.
• C)Business risk and exchange rate risk are firm-specific risks.
• D)Financial risk and default risk are market risks.
• E)Default risk and economic risk are relevant risks.

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Definitions:

Distribution Portals

Corporate portals that automate the business processes involved in selling or distributing products from a single supplier to multiple buyers.

Intranets

Private networks confined within an organization, designed to facilitate internal communication, collaboration, and access to company resources.

Collaboration

Mutual efforts by two or more individuals who perform activities to accomplish certain tasks.

Business Partners

Individuals or companies that engage in a continuing relationship to conduct business or collaborate on a project.