Jim and Paula Franklin started a dry cleaning business. The business may be successful or it may fail. The type of risk that is present when either a profit or loss could occur is called
A) pure risk.
B) subjective risk.
C) nondiversifiable risk.
D) speculative risk.
Answer: D
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A. It pays about 50 to 70 percent of the employee's salary in case of disability. B. It benefits the disabled employee only for the first year of disability. C. Payments under short-term plans are less than that of long-term plans. D. Most employers offer long-term disability plans. E. It offers coverage when the employee's dependent is disabled.
The degree of standardization of a product has no influence on channel design and strategy
Indicate whether the statement is true or false
Which of the following is/are a criteria for asset recognition under the FASB's and IASB's conceptual framework?
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Which of the following statements about hedging is (are) true? I. Hedging is a form of risk transfer. II. Hedging is used to address the risk of unfavorable price fluctuations
A) I only B) II only C) both I and II D) neither I nor II