The acceptance of a particular project usually has no impact on a firm's overall risk.

Question

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The acceptance of a particular project can have an impact on a firm's overall risk. If the project has a higher risk than the firm's current projects or if it requires a significant investment that could strain the firm's financial resources, accepting the project could increase the firm's overall risk. On the other hand, if the project has a lower risk than the firm's current projects, accepting the project could decrease the firm's overall risk. Therefore, the acceptance of a particular project can affect a firm's overall risk depending on the specifics of the project and the firm's existing portfolio of projects.

The Acceptance of a Particular Project Usually Has No Impact