Which One of the Following Is the Best Example of a Risk

question 16

Multiple Choice

Which one of the following is the best example of a risk associated with stock ownership?

• A) The stock paid a regular quarterly dividend.
• B) The firm's net income decreased by 4 percent for the quarter, as had been expected.
• C) One of the firm's patent applications was unexpectedly rejected.
• D) The firm's cost of debt increased as the result of an expected tax cut.
• E) The firm's production costs increased in line with previous years.

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Definitions:

Time-Limited Groups

Groups organized to exist or function for a specific, predetermined period.

Service Period

The specified timeframe during which a service is offered or obligated to be performed.

Original Contract

The initial agreement or set of terms established between parties before a project or service is executed.

Closure

The act of bringing something to an end or conclusion.