Which of the following is/are a company’s largest risk?
I.exchange rate risk
II.future raw material price risk
A)Only statement I is correct
B)Only statement II is correct
C)Both statements I and II are correct
D)Neither statement I nor II is correct

Question

Quizplus · Accepted Answer

Both exchange rate risk and future raw material price risk can have a significant impact on a company's financial performance and are therefore considered some of the largest risks that a company faces. Fluctuations in exchange rates can affect a company's import/export activities and overall profitability, while changes in raw material prices can impact a company's production costs and ultimately its pricing strategy.

Which of the Following Is/are a Company’s Largest Risk