Financial Risk Comes About When

question 9

Multiple Choice

Financial risk comes about when:

• A)new competitors emerge.
• B)new government regulations are introduced.
• C)the dividend payout ratio is increased.
• D)a company uses fixed-charge finance.

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Definitions:

Budget Line

An illustrated chart depicting all the different pairings of two items that are purchasable within a certain budget and cost framework.

Price of Food

The monetary value assigned to food products, influenced by factors such as production costs, supply and demand.

Rotation

The act of turning around a center or an axis, often used metaphorically to describe a systematical shift in processes or roles.

Budget Line

A graphical depiction of all possible combinations of two goods that a consumer can purchase with a given income and prices.