When Social Unrest and Disorder in a Country Causes Drastic

question 17

Multiple Choice

When social unrest and disorder in a country causes drastic changes in its business environment that adversely affect the profit and other goals of a business enterprise, the business enterprise is said to be facing which of the following type of risk?

• A)Political
• B)Demographic
• C)Ethical
• D)Technological
• E)Physiological

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Definitions:

Held to Maturity

A designation for financial assets which a company has the intention and ability to hold until a specified maturity date.

Available-For-Sale Securities

Financial assets that are purchased with the intent of selling before they reach maturity or when favorable market conditions exist.

Short-Term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle, whichever is longer.

Long-Term Investments

Investments that are not readily marketable or that management does not intend to convert into cash within the next year or operating cycle, whichever is longer.