Analysts Deciding Between Investments Must Consider the Comparative Risks

question 103

Multiple Choice

Analysts deciding between investments must consider the comparative risks.Which of the following factors affect the risk of business firms?

• A)Economy-wide factors, such as increased inflation or interest rates, unemployment, and recessions.
• B)Industry-wide factors, such as increased competition, lack of availability of raw materials, changes in technology, and increased government regulatory actions, such as anti-trust or clean environment policies.
• C)Firm-specific factors, such as labor strikes, loss of facilities due to fire or other casualty, and poor health of key managerial personnel.
• D)The amount of liquid resources available to the firm to run smoothly and effectively.
• E)all of the above

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Definitions:

Slanderous Campaign Ads

Defamatory or malicious advertising used especially during political campaigns to harm the reputation of an opposing candidate.

Vote Determination

The process by which preferences or decisions are expressed and counted, often within the context of elections or decision-making bodies, to decide outcomes.

Profit Maximization

The method through which a company identifies the pricing and production quantity that yields the highest profit.

Production Function

A mathematical relationship capturing the quantity of output that can be produced from a given set of inputs, such as labor and capital, under certain assumptions of technology and efficiency.