Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true?

• A) It is very difficult for investors to remove their exposure to unsystematic risk.
• B) It is very easy for investors to remove their exposure to systematic risk.
• C) It is very easy for investors to remove their exposure to unsystematic risk.
• D) Both (a)and (b)are true
• E) None of the above statements is true

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Definitions:

Internal Centralized

A management structure where decisions are made by a few key individuals or a central body within the organization.

Support Department

A segment within an organization that does not directly add to profit but provides essential services for other departments.

Profit Center

A segment or department within a business that is responsible for generating its own revenue and profit, assessed separate from other areas of the company.

Revenues

The total amount of money received by the company for goods sold or services provided during a certain time period.