Which of the Following Is Not a Diversifiable Risk

question 57

Multiple Choice

Which of the following is not a diversifiable risk?

• A) The risk that oil prices rise, increasing production costs
• B) The risk of a product liability lawsuit
• C) The risk that the CEO is killed in a plane crash
• D) The risk of a key employee being hired away by a competitor

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Definitions:

Ethical Principles

Fundamental guidelines in ethics that inform and guide moral conduct in various fields and situations.

Ethical Codes

A set of guidelines designed to set out acceptable behaviors for members of a particular group, organization, or profession.

Dilemma

A dilemma is a situation requiring a choice between two equally undesirable alternatives or posing a difficult problem seemingly without a satisfactory solution.

Intrinsically Good

Something that is good in and of itself, valued for its own sake rather than for its outcomes or consequences.