A company developing a brand-new technology that has never been made before is under a significant:
A)Commercial risk.
B)Technical risk.
C)Execution risk.
D)Contractual risk.

Question

Quizplus · Accepted Answer

Developing a brand-new technology involves technical risk as there is no precedent or guarantee that the technology will work as intended. There may be challenges related to research, development, and optimization of the technology. Commercial risk typically refers to risks related to market demand, competition, pricing, and sales. Execution risk relates to risks associated with the company's ability to execute its business plan and achieve its objectives. Contractual risk refers to risks related to legal and financial obligations arising from contracts or agreements.

A Company Developing a Brand-New Technology That Has Never Been