Which One of the Following Is an Example of a Nondiversifiable

question 60

Multiple Choice

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

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

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Definitions:

Need

A requirement essential for an organism's survival, growth, or well-being.

Physiological Needs

Basic physical requirements including air, water, food, shelter, and sleep, necessary for human survival.

Breathing

The process of inhaling and exhaling air through the respiratory system, essential for providing oxygen to the body's cells and removing carbon dioxide.

Love And Belonging

A human emotional need to be an accepted member of a group, whether it be family, friends, or a larger social connection.