Question

In: Finance

A company must balance an offering's _____ risk against the offering's _____ risk. Select one: a....

A company must balance an offering's _____ risk against the offering's _____ risk. Select one: a. financial; investment b. product; financial c. investment; opportunity d. opportunity; investment e. financial; product

Solutions

Expert Solution

Ans is c. investment; opportunity

Explanation: companies have to put many efforts while developing the offering which includes time and money, and new offering is subject to that investment risk also it has opportunity risk which involves marketing and earning form product that can be lost.


Related Solutions

Insurance is a hedge against catastrophic loss and a means to balance risk with reward. The...
Insurance is a hedge against catastrophic loss and a means to balance risk with reward. The bank will require you hold homeowners insurance on any property that is mortgaged (with them as the lien holder). The reason is that the bank wants to protect their investment (the loan they gave you) which is collateralized with your home. In the event of a loss the insurance would pay the bank first to release the balance of the lien and you second...
One of the assumptions for ANOVA, the variances of the populations: Select one: A. must be...
One of the assumptions for ANOVA, the variances of the populations: Select one: A. must be greater than F critical value B. must be less than F critical value C. must be different   D. must be equal. A cell phone company found that 75% of all customers want text messaging on their phones, 80% want photo capability, and 65% want both. What is the probability that a customer who wants text messaging also wants photo capability? Select one: A. 0.60...
Which one of the following is an example of a nondiversifiable risk? Select one: a. a...
Which one of the following is an example of a nondiversifiable risk? Select one: a. a well-managed firm reduces its work force and automates several jobs b. a well-respected president of a firm suddenly resigns c. a key employee suddenly resigns and accepts employment with a key competitor d. a well-respected chairman of the Federal Reserve suddenly resigns e. a poorly managed firm suddenly goes out of business due to lack of sales
Which of the following statement is correct? Select one: a. Cultural risk is the risk that...
Which of the following statement is correct? Select one: a. Cultural risk is the risk that foreigners doing business in another country will fail to adapt to cultural differences, and this failure will affect the MNC’s success. b. All the answers are incorrect. c. The firm using the hedging instruments such as a forward, futures, or swap contract magnifies the foreign exchange risk. d. Mexican tourists tend to come to the United States in smaller numbers when the dollar is...
The dollar is said to depreciate against the euro if Select one: a. the exchange rate...
The dollar is said to depreciate against the euro if Select one: a. the exchange rate falls. Other things the same, it will cost fewer euros to buy U.S. goods. b. the exchange rate falls. Other things the same, it will cost more euros to buy U.S. goods. c. the exchange rate rises. Other things the same, it will cost fewer euros to buy U.S. goods. d. the exchange rate rises. Other things the same, it will cost more euros...
Which of the following sentences is FALSE? Select one: a. Interest rate risk is the risk...
Which of the following sentences is FALSE? Select one: a. Interest rate risk is the risk that results from the changes in interest rates and thereby impact the bond value. b. As a bond approaches maturity, the price of the bond will approach its par value until, the bond is worth its face value at maturity. c. The value of a bond that pays semiannual interest is greater than that of an otherwise equivalent annual coupon interest paying bond. d....
If the British pound depreciates against the U.S. dollar Select one: A. British consumers lose by...
If the British pound depreciates against the U.S. dollar Select one: A. British consumers lose by a decrease in the pound price of U.S. exports to Britain. B. British consumers gain by a decrease in the pound price of U.S. exports to Britain. C. British businesses gain by an increase in the dollar price of exports to the United States. D. U.S. consumers win by a decrease in the dollar price of British exports to the United States.
If the British pound depreciates against the U.S. dollar Select one: British businesses gain by an...
If the British pound depreciates against the U.S. dollar Select one: British businesses gain by an increase in the dollar price of British exports to the United States. British consumers lose by an increase in the pound price of U.S. exports to Britain. British consumers gain by a decrease in the pound price of U.S. exports to Britain. U.S. consumers lose by an increase in the dollar price of British exports to the United States.
Which of the following statements about risk management is correct? Select one: a. risk management has...
Which of the following statements about risk management is correct? Select one: a. risk management has an anti-insurance bias and seeks to minimize the use of insurance in dealing with risk. b. risk management is concerned primarily with the risk problems of giant corporations. c. risk management has relevance for organizations of all sizes. d. risk management is a function of business and as such has little relevance for the individual.
risk management policy statement Select one: a. all of the above. b. should permit the risk...
risk management policy statement Select one: a. all of the above. b. should permit the risk manager some latitude. c. should be a product of the board of directors with advice from the risk manager. d. provides a framework within which the risk manager may make decisions.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT