Which of the following statements about financial risk is (are)true?
I.Enterprise risk does not include financial risk.
II.Financial risk is easily addressed through the purchase of insurance.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Enterprise risk includes financial risk as one of its components, encompassing a wide range of risks such as credit risk, market risk, and liquidity risk. Financial risk is not easily addressed through the purchase of insurance because it involves aspects like market volatility and credit risk, which cannot be simply insured against.

Which of the Following Statements About Financial Risk Is (Are)true