Which of the Following Is a Question That Should Be

question 115

Multiple Choice

Which of the following is a question that should be asked for each and every organisational process?

• A)Where can external knowledge be leveraged to improve the flow of material and information?
• B)How can we better configure our product to satisfy manufacturers?
• C)How can the cash flow be improved?
• D)How can we improve customer service?
• E)How can we reduce our staffing levels?

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Definitions:

Financial Risk

The risk added by the use of debt financing. Debt financing increases the variability of earnings before taxes (but after interest); thus, along with business risk, it contributes to the uncertainty of net income and earnings per share. Business risk plus financial risk equals total corporate risk.

Market Risk

The possibility for an investor to experience losses due to factors that affect the overall performance of the financial markets.

Diversifiable Risk

The portion of investment risk that can be reduced or eliminated through diversification among different assets.

Financial Leverage

Utilizing debt to finance additional assets, aiming to increase returns to shareholders but also increasing risk.