Members of a Business Development Team Are Involved in the Ongoing

question 80

Multiple Choice

Members of a business development team are involved in the ongoing process of creating a new installation hardware device, owing to widespread consumer demand. They are worried that by the time the finished product hits the market, customers' needs might change. Consequently, the new device, unable to satisfy customers' current needs, would become a failure. Which of the following risks does this best exemplify?

• A) Strategic risk
• B) Market risk
• C) Credit risk
• D) Internal risk

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Definitions:

CPA Canada Handbook

A comprehensive guide providing standards and guidelines for accounting and financial reporting in Canada.

Equity Method

Equity Method is an accounting technique used by companies to record investments in other companies, recognizing income or loss based on the investee's performance and adjusting the investment's value accordingly.

Consolidating

The process of combining financial statements of separate entities within a corporate group to present as if they were a single economic entity.

Capital Fund

A fund dedicated to financing long-term investment projects or for acquiring fixed assets.