Hewlett-Packard is a publicly traded corporation whose principal activity is making and selling computers.Customers can buy an HP computer directly from HP online if they pay with a bank credit card (such as Visa or Mastercard).HP's risk exposures therefore include all of the following except:
A)Market risk
B)Systems risk
C)Credit risk
D)Human error risk

Question

Quizplus · Accepted Answer

Credit risk is primarily concerned with the risk that a customer or counterparty will fail to fulfill their financial obligations. Since HP sells computers directly to customers who pay with bank credit cards like Visa or Mastercard, the credit risk is transferred to the card issuing banks rather than HP itself. HP would be more concerned with market risk (fluctuations in market conditions), systems risk (failures in their IT systems), and human error risk (mistakes made by employees) in their operations.

Hewlett-Packard Is a Publicly Traded Corporation Whose Principal Activity Is