BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A risk that is caused by the uncertainty associated withmarket forces, economic trends, and politics
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Pure risk
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Uninsurable risk
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risk taking
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Economic risk
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Explanation:
Detailed explanation-1: -Knight established the economic definition of the terms in his landmark book, Risk, Uncertainty, and Profit (1921): risk is present when future events occur with measurable probability. uncertainty is present when the likelihood of future events is indefinite or incalculable.
Detailed explanation-2: -Policy uncertainty (also called regime uncertainty) is a class of economic risk where the future path of government policy is uncertain, raising risk premia and leading businesses and individuals to delay spending and investment until this uncertainty has been resolved.
Detailed explanation-3: -This article outlines three types of uncertainty in economic evaluation: methodological, structural and parameter.
There is 1 question to complete.