Which two of the following industry-level and business environment factors present higher inherent risks? (choose two options)
A)A new industry with little or no government support
B)Heavily regulated industry with special taxes and unique regulations
C)Demand is not seasonal which provides steady revenue flow
D)Industry minimally affected by trends

Question

Quizplus · Accepted Answer

Heavily regulated industries with special taxes and unique regulations present a higher inherent risk as there are more compliance costs and potential legal issues. A new industry with little or no government support also presents a higher inherent risk as there may be uncertain market demand, lack of resources, and a lack of established norms and practices. Industries minimally affected by trends can be seen as more stable and predictable, while demand not being seasonal provides a consistent revenue flow.

Which Two of the Following Industry-Level and Business Environment Factors