What is the main purpose of Strategic Risk Management? a. Assess risks to identify which to avoid b.Transfer all risk exposures of the company c.Develop the company’s risk profile d. Create and protect value for its stakeholders   2..Which of the following cannot be derived from analyzing Porter’s Five Forces? aPotential threats to a company’s value proposition b.Industry’s attractiveness or level of competition c.Trends in the market or industry d. None of the foregoing 3..What is likely to happen if many new businesses enter a market? a.Competitive rivalry will intensify b.Industry profits will increase c.Industry capacity will fall d.Barriers to entry will rise

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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1. What is the main purpose of Strategic Risk Management?

a. Assess risks to identify which to avoid

b.Transfer all risk exposures of the company

c.Develop the company’s risk profile

d. Create and protect value for its stakeholders

 

2..Which of the following cannot be derived from analyzing Porter’s Five Forces?

aPotential threats to a company’s value proposition

b.Industry’s attractiveness or level of competition

c.Trends in the market or industry

d. None of the foregoing

3..What is likely to happen if many new businesses enter a market?

a.Competitive rivalry will intensify

b.Industry profits will increase

c.Industry capacity will fall

d.Barriers to entry will rise

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