In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from least risky to most risky, all other things being equal.
1) Completely new market in United States.
2) Completely new market in South America.
3) Addition to normal product line.
4) Repair to old machinery.

Question

Quizplus · Accepted Answer

Repairs to old machinery (4) are typically less risky than expanding product lines (3), which in turn is less risky than entering new markets. Entering a new market in the United States (1) is generally considered less risky than entering a new market in South America (2) due to factors like market familiarity, regulatory environment, and political stability.

In Order to Evaluate Risk, Management May Also Set Qualitative