Risk due to potential tax law changes is referred to as:
A)Business risk
B)Financial risk
C)Legislative risk
D)Tax risk

Question

Quizplus · Accepted Answer

Legislative risk refers to the risk associated with changes in laws or regulations that may affect the operations or financial position of a company. In this case, potential tax law changes can impact a company's financial position, making legislative risk the most appropriate choice. Business risk is the risk associated with the industry or market in which a company operates, financial risk is the risk associated with a company's financial structure, and tax risk refers to the risk of facing penalties or legal action from tax authorities.

Risk Due to Potential Tax Law Changes Is Referred to As