Which One of the Following Is the Equity Risk That

question 26

Multiple Choice

Which one of the following is the equity risk that is most related to the daily operations of a firm?

• A)market risk
• B)systematic risk
• C)extrinsic risk
• D)business risk
• E)financial risk

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Definitions:

Economic Profit

The difference between a firm’s total revenue and its total costs, including both explicit and implicit costs.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choice.

Monetary Payments

Transactions involving the transfer of money in exchange for goods or services.

Price-Taker Market

A competitive market situation where individual sellers or buyers have no influence over the market price of a product.