The inherent risk associated with the finance and investment cycle is less than that associated with other cycles,especially given the low number of transactions typically involved.

Question

Quizplus · Accepted Answer

The statement is false. The finance and investment cycle actually carries a high level of inherent risk due to the potential for fraud, errors in accounting, and fluctuations in the market. It may involve a low number of transactions but the financial impact of each transaction can be significant.

The Inherent Risk Associated with the Finance and Investment Cycle