Political risk is defined as an organization's risk of _____ because of adverse events and actions taken by host governments against it.
A) Loss of assets
B) Losing managerial control
C) Reduced earning power
D) All of the above three choices
E) Gaining managerial control and earning power

Question

Quizplus · Accepted Answer

Political risk can result in an organization experiencing loss of assets, losing managerial control, and reduced earning power as a result of adverse events and actions taken by host governments against it. Therefore, option D, which includes all of these choices, is the best answer. Option E is incorrect because political risk involves negative consequences, rather than gaining managerial control and earning power.

Political Risk Is Defined as an Organization's Risk of _____