Joan is highly concerned about the unpredictability of environmental or organizational conditions that affect her firm's performance. This is an example of
A) risk.
B) uncertainty.
C) hedging.
D) none of the above

Question

Quizplus · Accepted Answer

Joan's concern about unpredictability indicates a lack of information or knowledge about the future events that could affect the performance of her firm. This type of situation is called uncertainty, which is different from risk because risk implies some knowledge or data about the probability of events occurring. Hedging refers to strategies or actions taken to reduce the impact of risks or uncertainties, but it is not applicable in this scenario.

Joan Is Highly Concerned About the Unpredictability of Environmental or Organizational