Allison Peavy wants to invest but is worried about risk.In particular,she is worried that bad management and increased competition in the wireless phone market will make these companies less profitable than expected.What type of risk is Allison most concerned with?
A)Inflation
B)Interest rate
C)Business failure
D)Systematic
E)None of these

Question

Quizplus · Accepted Answer

Allison's concerns about bad management and increased competition affecting profitability are specific to the companies' internal factors and market environment, which are examples of business failure risk. This type of risk is associated with the potential for a company to perform poorly or fail due to internal or industry-specific challenges.

Allison Peavy Wants to Invest but Is Worried About Risk