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The purpose of random assignment is to:
Financial Risk
The possibility of losing money on an investment or business venture, including the risk of not receiving expected returns.
Financial Distress Costs
Expenses stemming from a company's financial troubles, including the costs of bankruptcy, restructuring, and impaired ability to conduct business.
Indirect Bankruptcy Costs
Indirect bankruptcy costs include the intangible costs related to the loss of business, customer trust, and employee morale that a company faces when going through bankruptcy.
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