Which of the following statements about financial risks is not true?
A) Many financial risks are attributable to fluctuations in value.
B) Financial risks arise from events that prevent a firm from conducting its normal scope of operations.
C) An example of a financial risk is one associated with unfavorable credit rating.
D) Price risks associated with input costs are a form of financial risk.

Question

Quizplus · Accepted Answer

Financial risks are not necessarily limited to events that prevent a firm from conducting its normal scope of operations, but can also derive from various other factors such as market fluctuations, interest rate changes, credit risks, market liquidity and volatility, and geopolitical events. Therefore, option B is not true.

Which of the Following Statements About Financial Risks Is Not