Analysts deciding between investments must consider the comparative risks.Which of the following is/arefirm-specific factors that affect the risk of business firms?
A)labor strikes
B)loss of facilities due to fire
C)poor health of key managerial personnel
D)loss of facilities due to earthquake
E)all of the above

Question

Quizplus · Accepted Answer

All of the above factors are firm-specific and could affect the risk of a business firm. Labor strikes could result in the loss of production and decrease in revenues, fires and earthquakes could damage facilities and result in losses, and poor health of key managerial personnel could lead to a lack of direction and decision-making ability within the company. Therefore, all of these factors should be considered by analysts when assessing the comparative risk of investments.

Analysts Deciding Between Investments Must Consider the Comparative Risks