Question: An entity is faced with a risk that has a low A company has recently opened a factory which manufactures agricultural machinery. Many of the

An entity is faced with a risk that has a low A company has recently opened a factory which manufactures agricultural machinery. Many of the components are imported from a foreign country. Which of the following is NOT an example of a business risk? a. The risk of demand for a product or service falling b. The risk of a components increasing in price due to a change in the exchange rate c. The risk of failure due to a poorly developed strategy d. The risk of an increase in energy costsprobability of occuring and a high negative impact if it does occur. Which of the following strategies is likely to be best suited to dealing with this risk? a. Reduce b. Avoid c. Transfer d. Accept

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