A business that can predict a financial risk will limit its investments and focus on strengthening its finances. C. financial risk. 14. B. political risk. What threatens the quality and timeliness of the software to be produced? ANSWER: B. B. to acquire an existing firm. 11. We are regularly adding more questions on this website, So please visit often and stay prepared for exams. Should be ignored, since they are not covered in the Project Risk Assessment; C and D; 30. A decrease in the firm's business risk. The lower risk of a project can be recognized by increasing By having business in different countries, a firm reduces A. credit risk. Which importance of planning is highlighted in the above statement? When using the expected value criterion, it is assumed that the individual wants to A Minimise risk for a given level of return. Ans - (a) Planning provides direction . Company A and Company B have the same total assets, operating income (EBIT), tax rate, and business risk. Risk can be minimised but cannot be eliminated. MCQ Questions for Class 12 Business Studies: Ch 9 Financial Management D Maximise return irrespective of the level of risk 6. A business that can predict a risk will always be at an advantage. Company A's basic earning power (BEP) exceeds its cost of debt financing (kd). We have provided Social Responsibilities of Business and Business Ethics Class 11 Business Studies MCQs Questions with Answers to … e. Statements b and d are correct. Business risk is any exposure a company or organization has to factor(s) that may lower its profits or cause it to go bankrupt. The sources of business risk are varied but can … a) Known risks b) Business risks c) Project risks d) Technical risks. MCQ Questions for Class 11 Business Studies with Answers were prepared based on the latest exam pattern. A business that can assess the impact of a safety risk can devise a safe way to work which can be a major competitive advantage. 10. Qualitative. C. to have products marketed overseas. 12. C Minimise risk irrespective of the level of return. False. ... Business Impact Analysis (BIA) MAO is the minimal acceptable outage that a system or service can have before affecting the mission. Risks can be divided into two basic types: business risk and pure (or insurable risk). D. business risk. ANSWER: A. D. to have management is overseas. d) Planning facilitates decision making. a) Planning provides direction. a) Risk exposure b) Risk prioritization c) Risk analysis d) All of the mentioned. Wholly owned subsidiary can be set up A. as a Greenfield venture. A primary benefit of a _____ risk is that it can be completed quicker than other methods. Q7- Changes and events cannot be eliminated but they can be anticipated and managerial response to them can be developed. c) Planning reduces the risk of uncertainty. 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