<<12345678910111213141516171819202122232425262728293031323334353637383940>> 1. Which type of projects face unique risks related to technological failures and political instability?Projects with low demandProjects in politically stable countriesProjects with complex technologyProjects with seasonal fluctuationsQuestion 1 of 40 2. What risk do projects involving products with high demand but not complex technology face once demand surges?Political riskMarket share riskRegulatory riskFinancial riskQuestion 2 of 40 3. What type of businesses are exposed to risks related to changing market conditions due to seasonal fluctuations or policy decisions?International businessesTechnology-based businessesPolitically stable businessesSeasonal or policy-dependent businessesQuestion 3 of 40 4. When scaling a project from local to national or international levels, what risk does it introduce?Regulatory riskMarketing riskFinancial riskPolitical riskQuestion 4 of 40 5. Venturing into international markets introduces which type of risk due to fluctuations in currency values?Interest rate riskInflation riskExchange rate riskMarket riskQuestion 5 of 40 6. What risks are businesses exposed to when expanding globally, particularly related to unfamiliar rules and regulations?Political and regulatory risksMarket and financial risksTechnological and competitive risksEnvironmental and legal risksQuestion 6 of 40 7. What technique is used to determine how sensitive the output of a system or model is to changes in certain input parameters?Sensitivity analysisScenario analysisDecision tree analysisSimulation analysisQuestion 7 of 40 8. In scenario analysis, what are the three scenarios typically planned for?Expected, pessimistic, and neutralNormal, pessimistic, and optimisticNeutral, optimistic, and pessimisticExpected, optimistic, and pessimisticQuestion 8 of 40 9. Hillier's Model is based on which measure to reflect the risk associated with cash inflows?Mean valueStandard deviationMedianModeQuestion 9 of 40 10. What type of correlation among cash flows is considered in Hillier's Model for risk analysis?Perfect correlationNo correlationNegative correlationPositive correlationQuestion 10 of 40 11. Decision tree analysis is used for making decisions under which condition?Certain outcomesUncertain outcomesFixed outcomesStable outcomesQuestion 11 of 40 12. What does a branch represent in a decision tree?DecisionProbabilityOutcomeRewardQuestion 12 of 40 13. Simulation analysis involves creating an artificial situation to do what?Imitate real scenariosPredict future outcomesAnalyze historical dataDetermine market conditionsQuestion 13 of 40 14. In risk analysis, what do exogenous variables depend on?Model parametersRandom eventsDecision maker's choiceMarket conditionsQuestion 14 of 40 15. Corporate Risk Analysis evaluates the impact of a new project on what?Market shareCombined risk profile of the firmCompany's revenueProject profitabilityQuestion 15 of 40 16. In risk analysis, which factors are recognized to control and mitigate risks?Internal and external risksPolitical and economic risksFinancial and regulatory risksSeasonal and market risksQuestion 16 of 40 17. What is the purpose of maintaining safety margins for various costs in risk analysis?To increase project costsTo decrease project timelinesTo account for unforeseen circumstancesTo reduce financial risksQuestion 17 of 40 18. What is a key element in decision-making under uncertainty using decision tree analysis?Fixed outcomesStable conditionsCertain probabilitiesUncertain probabilitiesQuestion 18 of 40 19. Which financial tools are mentioned to manage investment risks in risk analysis?Stocks and bondsOptions and futuresMutual funds and ETFsReal estate investmentsQuestion 19 of 40 20. In practice, what is the suggestion regarding cost estimates in risk analysis?Overestimate costs to ensure project completionUnderestimate costs to attract investorsInclude contingency costs and safety marginsIgnore contingency costs for accurate estimatesQuestion 20 of 40 21. What is a crucial step in estimating revenue for risk analysis in practice?Providing over-optimistic estimatesJustifying budgets based on speculationBeing conservative in revenue estimatesRelying solely on historical dataQuestion 21 of 40 22. In risk analysis, what does scenario analysis tailor based on?Industry and market conditionsCompany's historical dataAnalysts' predictionsCEO's preferencesQuestion 22 of 40 23. What is the primary purpose of sensitivity analysis in risk analysis?Test project robustnessPredict future market conditionsDetermine project timelinesCalculate project profitabilityQuestion 23 of 40 24. What does Decision Tree Analysis help in evaluating in risk analysis?Certain outcomesMultiple decision scenariosFixed probabilitiesStable market conditionsQuestion 24 of 40 25. What does the Decision Tree Analysis method involve for evaluating potential outcomes?Branches and nodesRisk-free investmentsMarket research dataIndustry forecastsQuestion 25 of 40 26. Simulation analysis involves creating artificial situations to do what in risk analysis?Predict future outcomesEvaluate historical dataImitate real scenariosDetermine market conditionsQuestion 26 of 40 27. What is a key step in preparing for simulation analysis in risk analysis?Analyzing market trendsFixing values of parametersIgnoring exogenous variablesSelecting random values for parametersQuestion 27 of 40 28. How is the frequency distribution of NPV obtained in simulation analysis?By plotting random valuesBy conducting market researchBy analyzing past projectsBy simulating the exercise multiple timesQuestion 28 of 40 29. What is a critical factor to consider in simulation analysis for risk assessment?Selection of random variablesTotal number of simulationsFrequency of data collectionHistorical market performanceQuestion 29 of 40 30. What is an important reason for using computers in simulation analysis for risk assessment?To generate random variablesTo perform manual calculationsTo simulate exercises multiple timesTo determine market trendsQuestion 30 of 40 31. Which step in risk analysis involves understanding variable and fixed costs?Cost ManagementFinancial StrategyInvestment PlanningSmart PricingQuestion 31 of 40 32. What technique is utilized to balance between using equity and debt for funding in risk analysis?Cost-Volume-Profit (CVP) AnalysisDecision Tree AnalysisSensitivity AnalysisActivity-Based CostingQuestion 32 of 40 33. What does the Decision Tree Analysis method involve for evaluating potential outcomes?Branches and nodesRisk-free investmentsMarket research dataIndustry forecastsQuestion 33 of 40 34. In risk analysis, what is the purpose of analyzing the cost of a product and market conditions?To reduce costsTo set the right priceTo increase market shareTo determine fixed costsQuestion 34 of 40 35. How does Hillier's Model reflect the risk associated with cash inflows in risk analysis?By considering mean valueBy analyzing the modeBy evaluating standard deviationBy examining medianQuestion 35 of 40 36. What is an important factor to consider in risk analysis regarding cost estimates?Providing over-optimistic estimatesIncluding contingency costsIgnoring safety marginsReducing project budgetsQuestion 36 of 40 37. In risk analysis, what is the suggestion regarding sensitivity analysis in practice?Conduct it only onceIgnore variations in input parametersTest different scenarios to assess robustnessRely on historical data for input parametersQuestion 37 of 40 38. What does the Decision Tree Analysis method involve for evaluating potential outcomes?Branches and nodesRisk-free investmentsMarket research dataIndustry forecastsQuestion 38 of 40 39. In risk analysis, what does a branch represent in the Decision Tree Analysis?DecisionProbabilityOutcomeRewardQuestion 39 of 40 40. In risk analysis, what is an important suggestion regarding scenario analysis?Tailor scenarios based on historical dataTailor scenarios based on industry and market conditionsIgnore scenario analysis as it is not usefulTailor scenarios based on analysts' predictionsQuestion 40 of 40 Loading...