Which of the Following Represent Unsystematic Risks

question 53

Multiple Choice

Which of the following represent unsystematic risks?
I.the president of a company suddenly resigns
II.the economy goes into a recessionary period
III.a company's product is recalled for defects
IV.the Federal Reserve unexpectedly changes interest rates

• A)I, II and IV only
• B)II and IV only
• C)I and III only
• D)I, II and III only

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Definitions:

Current Liabilities

Financial obligations a company is expected to settle within one year or within its operating cycle, whichever is longer.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with short-term assets.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales revenue, calculated by dividing sales revenue by total assets.

Noncurrent Assets

Assets not expected to be converted into cash within one year or the operating cycle, including property, plant, and equipment.