Which of the Following Statements Is True of Social Risk

question 3

Multiple Choice

Which of the following statements is true of social risk?

• A)It is the risk that involves the fears that consumers suffer when they worry others might not regard their purchases positively.
• B)It is the risk that involves the perceived danger inherent in a poorly performing product or service.
• C)It is the risk associated with the fear of an actual harm should a product not perform properly.
• D)It is the risk that includes the initial cost of a purchase, as well as the costs of using the item or service.
• E)It is the risk associated with the way people will feel if the product or service does not convey the right image.

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Definitions:

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights of ownership of the asset.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its expected useful life in equal annual amounts.

Operating Lease

A leasing agreement for short-term use of an asset, where the lessor retains risks and benefits of ownership.

Lessor

The owner of an asset that is leased to another party, referred to as the lessee.