Day: November 19, 2024

The following statements have been made in relation to risk and uncertainty:

Statement 1 – Risk is the variation in an outcome

Statement 2 – Uncertainty denotes the inability to predict an outcome

Are the statements true or false?

Select ONE answer:

1. Statement 1 = True / Statement 2 = False
2. Statement 1 = False / Statement 2 = True
3. Statement 1 = True / Statement 2 = True
4. Statement 1 = False / Statement 2 = False

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 3

1. Not correct
2. Not correct
3. Correct == > Risk is the variation in an outcome while uncertainty denotes the inability to predict an outcome (due to a lack of information).
4. Not correct

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