MBA 620 5-3 Quiz Milestone two Pre-Check (100% Correct Answers) Latest Update

5-3 Quiz: Milestone Two Pre-check - Results Attempt 1 of 2 Attempt Score 15 / 15 - A Overall Grade (Highest Attempt) 15 / 15 - A 1.5 / 1.5 Question 1 points One of the risks identified by a warehouse in Texas is hurricanes. How should you classify this risk? Select one. Question options: Product risk Macroeconomic risk Market risk Event risk Hide question 1 feedback Feedback Hurricanes are an external disaster risk that can be classified as an event risk. Question 2 1.5 / 1.5 points How should you evaluate the risk probability and impact of a hurricane for a warehouse in Houston, Texas? Select one. Question options: Medium probability, medium impact Medium probability, high impact Medium probability, low impact High probability, low impact Hide question 2 feedback Feedback The probability that a hurricane might affect the warehouse is medium, but if it does occur, its impact will be high. Question 3 1.5 / 1.5 points Which of the following risk mitigation strategies helps to reduce the company’s exposure to risk? Select one. Question options: Risk financing Risk transfer Risk retention Risk control Hide question 3 feedback Feedback Strategies to reduce a company’s exposure to risk, such as risk avoidance and risk reduction, are called risk controls. Question 4 1.5 / 1.5 points Which of the following ratios will help you assess the profitability of a company? Select one. Question options: Times interest earned Debt-to-equity ratio Return on equity Current ratio Hide question 4 feedback Feedback Return on equity, profit margin, and return on total assets are the core profitability ratios. Question 5 1.5 / 1.5 points Which of the following should NOT be considered when performing a cost-benefit analysis? Select one. Question options: Competition Labor costs Impact on customer service Sunk Cost Hide question 5 feedback Feedback A cost-benefit analysis should include costs related to direct costs, such as labor; intangible costs and benefits, such as impact on customer service; and the cost of risks, such as competition. Question 6 1.5 / 1.5 points How do you determine the opportunity cost of an investment? Select one. Question options: Add the cost of investment and labor involved in making the investment Determine the future value of the investment Compare the purchase value vs. market value of the investment Compare the cost of investing vs. not investing Hide question 6 feedback Feedback Opportunity cost is the potential benefit you miss if you choose not to invest. Question 7 1.5 / 1.5 points What does excessive risk in the different types of risks contribute to? Select one. Question options: Operations risk Franchise risk Fraud risk Systematic risk Hide question 7 feedback Feedback Franchise risk is a consequence of excessive risk in one or more of the other sources of risk. Question 8 1.5 / 1.5 points In a PESTEL analysis, which of the following factors can affect the social environment of a company? Select one. Question options: Trade agreements Bureaucracy Natural disasters Customer demographics Hide question 8 feedback Feedback Customer demographics is a part of the social factors in a PESTEL analysis. Question 9 1.5 / 1.5 points In a PESTEL analysis, which aspect of a company’s external environment is affected by tax policy changes? Select one. Question options: Environmental Political Legal Economic Hide question 9 feedback Feedback In a PESTEL analysis, tax policy is part of the political factors affecting a business. Question 10 1.5 / 1.5 points Which of the following terms is used to define the risk of a defect in one of the core processing activities? Select one. Question options: Financial risk Asset impairment risk Competitive risk Operations risk Hide question 10 feedback Feedback Operations risk refers to the risk of a defect in one of the core operating or processing activities or capabilities. Powered by TCPDF ()