Business Failure Risk

question 4

Multiple Choice

Business failure risk

• A) Cannot be diversified.
• B) Causes the business to increase its dividends.
• C) In the worst case, leads to improved earnings.
• D) Is associated with government bonds.
• E) Leads to lower profitability than anticipated.

Understand the number and duration of recessions since WWII.

Grasp the trends in consumer behavior and economic indicators over different periods.

Recognize the stakeholders affected by inflation and deflation.

Comprehend the phases of the business cycle and their characteristics.

---

Definitions:

Equilibrium Price

The market price at which the quantity of a good supplied equals the quantity demanded, resulting in market balance.

Buyers

Individuals or organizations that purchase goods or services for personal use or for resale.

Sellers

Individuals or entities that offer goods or services for sale in the marketplace.

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity of goods supplied.