Which One of the Following Is an Example of a Nondiversifiable

question 75

Multiple Choice

Which one of the following is an example of a nondiversifiable risk?

• A)a well respected chief executive of a firm suddenly resigns
• B)a well respected chairman of the European Central Bank suddenly resigns
• C)a key employee suddenly resigns and accepts employment with a key competitor
• D)a well managed firm reduces its work force and automates several jobs
• E)a poorly managed firm suddenly goes out of business due to lack of sales

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Definitions:

Gratitude Showing

The act of expressing appreciation or thankfulness for benefits or favors received, often considered beneficial for personal well-being.

Morbid Preoccupation

An excessive and unhealthy focus or interest in thoughts or themes considered to be unwholesome or linked to death, disease, or other dark topics.

Death Understanding

The comprehension of the concept of death, its permanence, and the changes it implies, typically developing with age and cognitive growth.

Professional Counseling

A form of assistance provided by certified professionals designed to help individuals deal with personal, social, or psychological challenges and improve their mental health.