Factors That Impact Inherent Risk of Financial Instruments Do Not

question 29

Multiple Choice

Factors that impact inherent risk of financial instruments do not include

• A) management's objectives related to investment activity.
• B) the complexity of the securities.
• C) the cost of the securities.
• D) the company's prior experience with certain investments.

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Definitions:

Innate Traits

Characteristics or qualities that an individual is born with, not acquired or learned.

Maturation

The process of becoming mature; the process of developing in physical, sexual, intellectual, and emotional capacities, typically seen as a natural growth pattern.

Human Genome

The complete set of nucleic acid sequences for humans, encoded as DNA within the 23 chromosome pairs in cell nuclei and in a small DNA molecule found within individual mitochondria.

Genes

Units of heredity made up of DNA that carry genetic information and are responsible for the inherited characteristics of organisms.