Which One of the Following Is an Example of Unsystematic

question 93

Multiple Choice

Which one of the following is an example of unsystematic risk?

• A)The inflation rate increases unexpectedly
• B)The federal government lowers income taxes
• C)An oil tanker runs aground and spills its cargo
• D)Interest rates decline by .5 percent
• E)The GDP rises by .5 percent more than anticipated

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Definitions:

Limited Partners

Investors in a partnership who are not involved in daily business operations and whose liability is limited to the amount of their investment.

Limited Liability

A legal principle that limits the financial liability of company owners to the amount they've invested in the business, protecting personal assets from company debts and obligations.

Equally Liable

A condition under which multiple parties are held jointly responsible to the same extent for a legal obligation or debt.

LLC Member

An owner or part-owner of a Limited Liability Company, who contributes to the business and shares in its profits and losses.