Which of the Following Is NOT a Diversifiable Risk

question 8

Multiple Choice

Which of the following is NOT a diversifiable risk?

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

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Definitions:

Vicarious Learning

The process of learning by observing the actions of others and the consequences of those actions, without directly experiencing them oneself.

Kickflip

A trick performed on a skateboard where the rider and board spin horizontally in the air.

Skateboard

A small, narrow platform with wheels attached to its underside, used for riding as a sport or leisure activity.

Watch

A timepiece worn typically on the wrist, designed to keep and indicate time.