Which of the Following Is Considered a Systematic Risk

question 100

Multiple Choice

Which of the following is considered a systematic risk?

• A) Tahoe, Inc. fires its CEO for embezzlement.
• B) The government announces inflation was higher than expected in the most recent quarter.
• C) Bio-Norm announces a new drug to treat arthritis.
• D) A company's sales decline for the seventh consecutive quarter.
• E) A major lawsuit is announced against Kolby Corp.

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Definitions:

Operating Activity

Refers to the primary revenue-generating activities of an organization, such as sales and service provision.

Direct Method

A cash flow statement reporting approach that lists major operating cash receipts and payments, used to show actual cash flows.

Cash Payments

Cash Payments are transactions where monetary value is transferred from one party to another in the form of cash or its equivalent to settle a debt or purchase a good or service.

Positive Cash Effect

The increase in the cash holdings of a business, typically resulting from operational activities, investments, or financing activities that bring in more cash.