Bad products or poor corporate management may result in investors experiencing ______________ risk.
A) inflation
B) interest rate
C) business failure
D) systematic
E) income

Question

Quizplus · Accepted Answer

Business failure risk refers to the possibility of a company going bankrupt or experiencing financial difficulties that could lead to a decline in the value of its stock. This type of risk can arise from factors such as poor management decisions, competitive pressures, or changes in consumer preferences. So, bad products or poor corporate management can increase the risk of a business failure, which can negatively impact investors.

Bad Products or Poor Corporate Management May Result in Investors