As gasoline prices fell in 2015, sales of hybrid and electric vehicles dropped sharply.This is an example of
A)liquidity risk.
B)event risk.
C)business risk.
D)purchasing power risk.

Question

Quizplus · Accepted Answer

This is an example of business risk as the decrease in sales occurred due to external factors affecting the demand for hybrid and electric vehicles. This risk is inherent in the nature of the business and cannot be eliminated entirely.

As Gasoline Prices Fell in 2015, Sales of Hybrid and Electric