Which of the Following Risks Deals with the Possibility That

question 150

Multiple Choice

Which of the following risks deals with the possibility that bad management,unsuccessful products,or other factors will cause the firm to be less profitable than originally anticipated?

• A) Inflation
• B) Interest rate
• C) Business failure
• D) Market
• E) Stock

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Definitions:

Fraud

A deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Misrepresentation

The act of giving false or misleading information about a matter of fact, which may induce someone to enter into a contract or make a decision they otherwise might not have made.

Rescinds

To annul, rescind, or abolish a law, order, or agreement.

Deceit

A tort involving intentional misrepresentation or cheating by means of some device.