Having mutually agreed to the negotiation terms put forth by each other,the negotiators of two firms cut a deal.However,there is always the risk associated with the willingness of the other party to honor its terms and live up to its contractual obligations.What risk is this known as?
A) operational risk
B) contractual risk
C) financial risk
D) company risk

Question

Quizplus · Accepted Answer

The risk associated with the willingness of the other party to honor its terms and live up to its contractual obligations is known as contractual risk. This risk pertains to the possibility that the other party may fail to meet the terms of the negotiated contract, which can result in financial losses, legal issues, and damage to the company's reputation. Therefore, it is important for firms to have risk management strategies in place to mitigate this risk.

Having Mutually Agreed to the Negotiation Terms Put Forth by Each