Which of the Following Is NOT an Example of a Risk

question 12

Multiple Choice

Which of the following is NOT an example of a risk of ownership of an asset?

• A) idle capacity;
• B) gains on the eventual sale of the asset;
• C) uninsured damage;
• D) technical obsolescence.

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Definitions:

Revenue

The total amount of money a company generates from its business activities, such as sale of goods or services, before any expenses are subtracted.

Asset

Property or something of value owned by a person or business that is considered as a resource having economic value expected to provide future benefits.

Stockholders' Equity

The remaining interest in a company's assets after its liabilities are subtracted, signifying ownership stake.

Liabilities

Financial obligations or debts owed by a company to creditors, which must be settled over time through the transfer of assets, provision of services, or other economic benefits.