The risk faced by financial institutions in which advancement of technology does not produce savings in cost is classified as ___________?
Correct answer: D. technology riskAccounting & Auditing
- A. savings risk
- B. advance risk
- C. cost risk
- D. technology riskAccounting & Auditing
Explanation
Technology risk arises when technological advancement fails to generate the expected cost savings, leaving an institution at a cost disadvantage. The other options are not standard classifications for this technology-related problem.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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