Which One of the Following Is an Example of Systematic

question 83

Multiple Choice

Which one of the following is an example of systematic risk?

• A)A poorly managed company suddenly goes out of business due to slow sales.
• B)An efficient company reduces its work force and automates several jobs.
• C)A key company employee suddenly resigns and accepts employment with a competitor.
• D)A well respected chairman of the Federal Reserve suddenly resigns.
• E)An unpopular president of a firm suddenly resigns.

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Definitions:

Adaptation

The process by which organisms or entities adjust to changes in their environment or operations to ensure survival or efficiency.

Laboratory Research

The systematic investigation and experimentation carried out in a controlled environment, notably within a lab, aimed at acquiring new knowledge.

Economic Benefits

The advantage that an entity receives in terms of increased cash flows, cost savings, or other financial gains.

Patent Amortization

This refers to the systematic reduction over time of the book value of a patent, treated as a non-cash expense on the income statement, reflecting the expiration of the patent's useful life.