In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from the least to the most risky. 1. completely new market in Canada
2) completely new market in South America
3) addition to normal product line
4) repair to old machinery

Question

Quizplus · Accepted Answer

Repair to old machinery is the least risky as it involves existing operations. Addition to the normal product line is slightly riskier but still within familiar territory. Entering a completely new market in Canada is riskier due to unfamiliarity, and entering a completely new market in South America is the most risky due to additional factors like cultural and economic differences.

In Order to Evaluate Risk, Management May Also Set Qualitative