Analysts deciding between investments must consider the comparative risks.Which of the following is/areindustry-wide factors that affect the risk of business firms?
A)increased competition
B)increased government regulatory actions, such as anti-trust or clean environment policies
C)changes in technology
D)lack of availability of raw materials
E)all of the above

Question

Quizplus · Accepted Answer

All of the above factors can affect the risk of business firms and are industry-wide in nature. Increased competition can lead to decreased profits and potential bankruptcy for companies, while increased government regulatory actions can increase costs and reduce flexibility. Changes in technology can disrupt business models and make products or services obsolete, while a lack of availability of raw materials can lead to supply chain disruptions and production delays. All of these factors must be considered by analysts when evaluating the risk of potential investments.

Analysts Deciding Between Investments Must Consider the Comparative Risks