Speculative Risk

question 93

Multiple Choice

Speculative risk

• A)exists whenever there is the potential for both gain and loss.
• B)exists whenever there is only the possibility of loss.
• C)exists only in financial markets.
• D)exists only in gambling.

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Definitions:

Financial Position

A snapshot of what a company owns and owes, or its assets and liabilities, at a specific point in time.

Product Warranty

A promise or guarantee given to a customer that a product is free from defects and will perform as specified for a certain period of time.

Company Tax Rate

The percentage of its profits an organization is required to pay to the government as tax.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the taxable income.