GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a situation that presents the chance of a loss due to probabilities unknown
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ability to speak two or more languages
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company which has its facilities and other assets in at least one country other than its home country
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global market in which employers across the world may search for potential employees in foreign countries and vice versa
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transport, handling and storage of funds, goods and information outside and inside the production process
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Detailed explanation-1: -A situation that presents the chance of a loss due to probabilities unknown. A risk which result in the decline of a company’s economic value from currency movements, which causes a loss in competitive strength. A risk in which the change rates of either of the two countries will fluctuate.
Detailed explanation-2: -Risk is the uncertainty regarding the occurrence of financial loss. A peril is the actual cause of a loss and is specifically identified in the policy. A hazard is a situation or condition that may increase the possibility of a loss occurring.
Detailed explanation-3: -Which of the following is any situation that presents the possibility of a loss? Any situation that presents the possibility of a loss is known as loss exposure.
Detailed explanation-4: -Speculative risk refers to price uncertainty and the potential for losses in investments. Assuming speculative risk is usually a choice and not the result of uncontrollable circumstances. Pure risk, in contrast, is the potential for losses where there is no viable opportunity for any gain.
Detailed explanation-5: -Economic risk may result in gain or loss because of changing economic conditions. Factories begin laying off workers during the decline period of the business cycle. In the business cycle, the trough is followed by recovery. The three major insurable risks are pure, economic, and speculative.