Nonsystematic Risk Is Also Referred to as

question 52

Multiple Choice

Nonsystematic risk is also referred to as

• A)market risk, diversifiable risk.
• B)firm-specific risk, market risk.
• C)diversifiable risk, market risk.
• D)diversifiable risk, unique risk.

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Definitions:

Reciprocal Services

Transactions in which services are exchanged between departments or units within an organization, often involving an allocation of costs.

Mutual Provision

The practice of supplying and receiving goods or services among a group or organizations, based on cooperative agreement rather than market competition.

Support Departments

Business units that provide essential services (like IT, HR, and administration) needed by other departments to perform their core activities effectively.

Two-Stage Cost Allocation

A method in cost accounting where costs are first allocated to intermediate cost pools and then charged to specific products or services.