Reference no: EM133147995
1) Which of the following terms is used to define the risk of a defect in one of the core processing activities? Select one.
A) Asset impairment risk
B) Operation risk
C) Competitive risk
D) Financial risk
2) What does excessive risk in the different types of risks contribute to? Select one.
A) Systematic risk
B) Operations risk
C) Fraud risk
D) Franchise risk
3) Which of the following risk mitigation strategies helps to reduce the company's exposure to risk? Select one.
A) Risk financing
B) Risk control
C) Risk transfer
D) Risk retention
4) In a PESTEL analysis, which aspect of a company's external environment is affected by tax policy changes? Select one.
A) Political
B) Economic
C) Legal
D) Environmental
5) How do you determine the opportunity cost of an investment? Select one.
A) Compare the purchase value vs market value of the investment
B) Add the cost of investment and labor involved in making the investment
C) Compare the cost of investing vs not investing
D) Determine the future value of the investment
6) In a PESTEL analysis, which of the following factors can affect the social environment of a company? Select one.
A) Trade agreements
B) Customer demongraphics
C) Natural disasters
D) Bureacracy
7) Which of the following should NOT be considered when performing a cost-benefit analysis? Select one.
A) Impact on customer service
B) Competition
C) Labor costs
D) Sunk Cost
8) One of the risks identified by a warehouse in Texas is hurricanes. How should you classify this risk? Select one.
A) Macroeconomic risk
B) Market risk
C) Product risk
D) Event risk
9) How should you evaluate the risk probability and impact of a hurricane for a warehouse in Houston, Texas? Select one.
A) High probability, low impact
B) Medium probability, high impact
C) Medium probability, low impact
D) Medium probability, medium impact
10) Which of the following ratios will help you assess the profitability of a company? Select one.
A) Times interest earned
B) Debt-to-equity ratio
C) Current ratio
D) Return on equity