Which One of the Following Is an Example of a Nondiversifiable

question 123

Multiple Choice

Which one of the following is an example of a nondiversifiable risk?

• A) a well-respected president of a firm suddenly resigns
• B) a well-respected chairman of the Federal Reserve suddenly resigns
• C) a key employee suddenly resigns and accepts employment with a key competitor
• D) a well-managed firm reduces its work force and automates several jobs
• E) a poorly managed firm suddenly goes out of business due to lack of sales

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Definitions:

Management Function

The roles or actions performed by managers to plan, organize, lead, and control an organization's resources towards achieving specific goals.

Arousing Enthusiasm

The act of stimulating excitement, interest, or eagerness in someone towards a specific idea, activity, or goal.

Management Function

The primary activities that managers perform to achieve organizational objectives, typically including planning, organizing, leading, and controlling.

Organisational Strategy

It outlines the long-term objectives of an organization and the plans devised to achieve these goals effectively.