Accounting Multiple Choice Question – 6 December 2024

Which of the following risks that Alex plc faces should be classified as business risk?

Select ONE answer:

1. Product risk
2. Event risk
3. Process risk
4. Financial 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 1

1. Correct == > Business risk arises from the nature of the business, its operations, and the conditions in which it operates; this includes strategy, enterprise, and product risks. Financial risk and operational risk, which includes event and process risks, are separate types of risk.
2. Not correct
3. Not correct
4. Not correct

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