The Government of Ugania Had Been Extending Huge Amounts of Loans

question 115

Multiple Choice

The government of Ugania had been extending huge amounts of loans to the business enterprises in the country.However,the borrowers failed to generate the profits necessary to repay their debts.As a result,national banks in Ugania had a lot of nonperforming assets on their books,and the Uganian currency was devalued.In this context,the business enterprises in Ugania are most likely to face which of the following type of risk?

• A)ethical
• B)economic
• C)technological
• D)legal
• E)sociological

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Definitions:

Strategic Opportunism

Focuses on long‐term objectives while being flexible in dealing with short‐term problems.

Long-Term Objectives

Goals or plans that are intended to be achieved over an extended period, typically over several years, focusing on future growth and development.

Short-Term Problems

Issues or challenges that need immediate attention and resolution, typically affecting an organization or individual over a brief period.

Crisis Management

The identification, prevention, and handling of emergencies, especially those that threaten to harm an organization's people, profitability, or reputation.