Risks related to a company's business units or functions are:
A) activity-level risks.
B) external risks.
C) entity-level risks.
D) critical risks.

Question

Quizplus · Accepted Answer

Risks related to a company's business units or functions are usually called activity-level risks. These risks are specific to the operations of the business and the activities it performs. They can include risks related to production, distribution, marketing, and human resources, among others. Therefore, choice A is the best answer. Entity-level risks (choice C) refer to risks that affect the entire organization, while critical risks (choice D) are risks that can have a significant impact on the achievement of the organization's objectives. External risks (choice B) are risks that originate outside the organization, such as economic, political, or environmental risks.

Risks Related to a Company's Business Units or Functions Are