Which of the following types of projects has average total risk?
A)Speculative ventures
B)New products
C)Expansions of existing business
D)Cost improvements

Question

Quizplus · Accepted Answer

Expansions of existing businesses typically have average total risk because they involve building on a successful business model and an established customer base, minimizing the risk of failure. The other options listed have higher levels of risk: speculative ventures involve high risk and potential high rewards, new products involve high uncertainty and may fail to meet market demand, and cost improvements entail some risk of failure if they do not result in the expected savings.

Which of the Following Types of Projects Has Average Total