One of the Following Is Not a Type of Risk

question 93

Multiple Choice

One of the following is not a type of risk that executives must address.Which is it?

• A) business risk taking
• B) financial risk taking
• C) personal risk taking
• D) product-market risk taking

Assess the financial implications of discontinuing a product.

Identify sunk costs and their relevance in decision-making.

Evaluate the profitability of processing products further versus selling them as intermediate products.

Analyze the financial impact of introducing a new product or accepting a special order.

---

Definitions:

Price Makers

Entities that have the ability to control the prices of the products or services they offer, due to lack of significant competition.

Downward-Sloping Demand

Describes the general tendency for the demand for a good or service to decrease as its price increases.

Monopolistic Competitors

Firms in a market structure where many companies sell products or services that are similar but not identical, allowing for competition based on quality, price, and branding.

Linear Demand Curve

A demand curve that shows a constant relationship between price and quantity demanded, typically resulting in a straight line when graphed.