A
Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in
To describe:The way given industry condition will result in business risk.
B
Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.
To describe:The way given industry condition will result in business risk.
C
Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.
To describe:The way given industry condition will result in business risk.
D
Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.
To describe:The way given industry condition will result in business risk.
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EBK AUDITING & ASSURANCE SERVICES: A SY
- Business Risk , refers to the certainty of operating income caused by products, customers, machinery and the way production takes place. Select one: True Falsearrow_forwardwhy there is material uncertainty in the company?arrow_forwardExplain how an enterprise determines its operating segments and the factors that influence this determination.arrow_forward
- Determination of a suitable strategy for a company begins with identifying opportunities and risks in its environment. Discuss how strategy might be determined from analyzing the following environments: (a) The economic environment (b) The political environment (c) The cultural environment (d) The legal environmentarrow_forwardA process that create a financial position that offsets the risk of an ongoing business process is which method of handling risk? Transfer the risk Keep the risk Avoid the risk Mitigate the riskarrow_forwardWhich of the following refers to a situation where a company has a high concentration of its business in a particular industry’s market? competitor’s resources market dependence resource similarity actor’s reputationarrow_forward
- Define operating leverage and explain its importance to a company and how it relates to risk.arrow_forwardWhich of the following is nor a common goal of an organization? A. operational efficiency B. being acquired by another business C. achieving strategic goals D. measuring financial performancearrow_forwardManagers in decentralized organizations make decisions relating to all of the following except_______. A. the companys stock price B. equipment purchases C. personnel D. prices to charge customersarrow_forward
- What is the most important reason for an organization to use enterprise riskmanagement?arrow_forwardWhich of the following does not describe a management control system? OA. A system that only measures profitability OB. Implements a company's strategic goals OC. Establishes a company's strategic goals OD. Monitors a company's strategic goalsarrow_forwardPick three industries and describe how the risks faced by companies within those industries caninfluence their planning, controlling, and decision-making activities.arrow_forward
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