This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
A macro risk is an external factor that affects an entire economy or industry, often beyond the control of an individual business. Let's evaluate the options: A. Political instability: This is an external, large-scale factor that can impact all businesses in a country or region. It is a macro risk. B. Legal regulations: Changes in laws and regulations are external factors that affect entire industries or the economy. They are macro risks. C. Economic recession: A recession is a widespread decline in economic activity, affecting many businesses. It is a macro risk. D. Poor internal management: This refers to issues within a specific organization, such as inefficient operations or bad decision-making. These are micro risks or idiosyncratic risks* because they are specific to the company and are generally within its control. Therefore, poor internal management is not considered a macro risk. The correct option is D. D. Poor internal management That's 2 down. 3 left today — send the next one.