A unit branch faces the risk of variability in earnings if the surrounding economy weakens and people and businesses move away to other market areas.

Question

Quizplus · Accepted Answer

A weakening economy could lead to a decrease in demand for the unit's products or services, which could result in lower earnings. Additionally, if people and businesses move away, there could be fewer customers for the unit, further impacting its earnings. This variability in earnings due to external factors is a significant risk faced by units in many industries.

A Unit Branch Faces the Risk of Variability in Earnings