Day: November 18, 2024

Accounting Multiple Choice Question – 18 November 2024

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex, the strategy director of Lucy plc is assessing a particular project that he may recommend to the board of directors.

Alex is concerned, however, about the risk-averse attitude of the board to similar projects in the past.

In terms of risk, risk aversion is a measurement of?

Select ONE answer:

  1. The probability of risk arising
  2. Project uncertainty
  3. The impact of risk
  4. Appetite for risk

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > Appetite for risk is the extent to which you are willing to take on risk. Being risk adverse means that you prefer to take the investment with the lowest risk.

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