📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      ABC Ltd stated the reason of poor performance of the

      company was the unsystematic risks faced by it in the current financial year. Which of the following is the likely to be the unsystematic risk that ABC Ltd would have faced?
      A Inflation Correct Answer Incorrect Answer
      B Interest rate fluctuation Correct Answer Incorrect Answer
      C Depreciation of currency Correct Answer Incorrect Answer
      D Shortage of raw material with supplier company Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      Unsystematic risk is the risk associated with the specific industry or company. Here shortage of raw material with supplier company is specific to ABC Ltd. Rest of the risks are systematic in nature, i.e. they impact whole market and all participants like inflation, or changes in interest rate.

      Practice Next
      More Financial Management Questions

      Relevant for Exams:

      ask-question