Which of the Following Is a Risk Associated with Complex

question 24

Multiple Choice

Which of the following is a risk associated with complex financial instruments?

• A)Management's objectives in entering into such transactions may relate to misstating the financial statements.
• B)Management and/or those charged with corporate governance may lack experience with complex financial instruments.
• C)Management may enter into such transactions without proper oversight from those charged with corporate governance.
• D)All of the above are risks.

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Definitions:

Outlet Port

An exit point on a device or machine where substances (fluid or gas) are expelled or discharged.

Hydraulic Pump

A device that converts mechanical energy into hydraulic energy by forcing fluid from a reservoir into a hydraulic system.

Rpm

Stands for revolutions per minute, a measure of the frequency of rotation, specifically the number of rotations around a fixed axis in one minute.

Load

The amount of electrical power or physical weight that is applied or carried by a system or component.