SIE practice questionhardBusiness risk
A firm’s profits drop after a major product launch fails. Which risk does this situation exemplify?
- AInflation risk
- BCredit risk
- CBusiness risk✓ Correct answer
- DCurrency risk
Explanation
Why C — Business risk
Failure of a key product is a company-specific threat, which is business risk. Inflation, credit, and currency risks are unrelated here.
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