Which of the Following Contributes to High Project Risk

question 50

Multiple Choice

Which of the following contributes to high project risk?

• A)Probability of failure is low.
• B)If the project fails,the results can be easily rectified.
• C)The project is fully insured against failure.
• D)Consequences of project failure are serious.

Comprehend the effects of price controls (ceilings and floors) on market equilibrium.

Recognize the outcomes of government intervention in the form of quotas and price controls and their impact on supply and demand.

Analyze the implications of quotas and price ceilings/floors on surplus, shortage, and market inefficiencies.

Illustrate the concept of deadweight loss and its relation to market interventions such as quotas and price controls.

---

Definitions:

Cheques Clear

Refers to the process by which a bank verifies that the funds available in the account of the individual who wrote the cheque are sufficient to cover the amount, and subsequently moves those funds to the account of the cheque recipient.

Incremental Bad Debt

Additional losses expected from non-payment or default by borrowers beyond what was originally anticipated.

Bad Debt Losses

Financial losses a company incurs when it cannot collect payment from a borrower or customer.

Decline

A decrease in the value or quantity of something.