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

Question

Quizplus · Accepted Answer

Exchange rate risk and future raw material price risk are two major risks faced by companies. Exchange rate fluctuations can significantly impact a company's earnings, especially if the company is engaged in international trade. Similarly, future raw material price risk can significantly affect a company's profit margins, and it can be challenging for a company to pass on the increased costs to the customers. Therefore, a company needs to manage both these risks effectively to minimize their impact on the bottom line.

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