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NEW QUESTION: 1
Which of the following is an example of market risk?
A. the risk that competing firms will enter the market when a firm's patent protection expires
B. the risk that an automobile manufacturer will have to undertake a massive recall of its cars
C. the risk that the nation will enter a recession
D. the risk that a drug company will produce a pill that will cure cancer
Answer: C
Explanation:
The risk that the nation will enter a recession is an example of market risk. A recession will
affect the prices of all securities to one degree or another. The other choices are examples of business
risk-a risk that is tied to a specific firm. In finance, risk means uncertainty, so even the possibility that a
drug company will produce a pill that will cure cancer is referred to as a risk.

NEW QUESTION: 2

A. Option D
B. Option A
C. Option B
D. Option C
Answer: C

NEW QUESTION: 3
When developing an information security governance framework, which of the following should be the FIRST activity?
A. Develop policies and procedures to support the framework.
B. Integrate security within the system's development life-cycle process.
C. Align the information security program with the organization's other risk and control activities.
D. Develop response measures to detect and ensure the closure of security breaches.
Answer: C