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CFP Certified Financial Planner Test Prep

Category - Foundation

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Suppose that the company Leopard Inc. is intending to make a huge investment in Lion Unlimited. Which type of risk is Leopard Inc. facing?

Business risk
Reputation risk
Credit risk
Strategic risk

Explanation

Answer: D - Leopard Inc. is facing a high degree of uncertainty of profit and loss due to investment, also known as strategic risk.

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