BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Market Risk
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Interest Rate Risk
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Business Risk
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Purchasing Power Risk
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Detailed explanation-1: -This is distinct from systematic risk, the dangers inherent to the market as a whole. The most common examples of unsystematic risk are the risks that are specific to an individual firm. Examples can include management risks, litigation risks, location risks, and succession risks.
Detailed explanation-2: -Examples of systematic risks include: Macroeconomic factors, such as inflation, interest rates, currency fluctuations. Environmental factors, such as climate change, natural disasters, resource, and biodiversity loss.
Detailed explanation-3: -Systematic risk is a risk that impacts the entire market or a large sector of the market, not just a single stock or industry. Examples include natural disasters, weather events, inflation, changes in interest rates, war and even terrorism.
Detailed explanation-4: -Business risk is often categorized into systematic risk and unsystematic risk. Systematic risk refers to the general level of risk associated with any business enterprise, the basic risk resulting from fluctuating economic, political, and market conditions.