Match List I with List II: List I List II (A) Market risk (I) Associated with the efficiency with which a firm conducts its operations within the broader environment imposed upon it. (B) Financial risk (II) Arises due to change in operating conditions caused by conditions thrust upon the firm which are beyond its control. (C) External business risk (III) Variations in price sparked off due to real, social, political and economic events. (D) Internal business risk (IV) Associated with the capital structure of a firm. Choose the correct answer from the options given below:

Match List I with List II: List I List II (A) Market risk (I) Associated with the efficiency with which a firm conducts its operations within the broader environment imposed upon it. (B) Financial risk (II) Arises due to change in operating conditions caused by conditions thrust upon the firm which are beyond its control. (C) External business risk (III) Variations in price sparked off due to real, social, political and economic events. (D) Internal business risk (IV) Associated with the capital structure of a firm. Choose the correct answer from the options given below: Correct Answer (A) - (III), (B) - (IV), (C) - (II), (D) - (I)

The correct answer is (A) - (III), (B) - (IV), (C) - (II), (D) - (I)

The correct match is given below:

List I List II
(A) Market risk (III) Variations in price sparked off due to real, social, political and economic events.
(B) Financial risk (IV) Associated with the capital structure of a firm.
(C) External business risk (II) Arises due to change in operating conditions caused by conditions thrust upon the firm which are beyond its control.
(D) Internal business risk (I) Associated with the efficiency with which a firm conducts its operations within the broader environment imposed upon it.

 

Important Points Market risk: 

Market risk refers to the probability that an individual or other entity would suffer losses as a result of factors affecting the overall performance of financial market investments.

Financial risk:

The risk of losing money on an investment or business endeavour is referred to as financial risk. Credit risk, liquidity risk, and operational risk are some of the more prevalent and distinct financial hazards. Financial risk is a sort of danger that might cause interested parties to lose money.

External business risk:

Economic events that occur outside of the business structure are frequently considered external risks. External occurrences that result in external risk are impossible for a corporation to manage or predict with high accuracy. Therefore, it is hard to reduce the associated risks.

Internal Business Risk:

Internal risks are those that emerge from within a company's organisation and occur during routine business activities. Because these risks can be predicted with some accuracy, a corporation stands a fair chance of lowering internal business risk.

Related Questions

The question given below consists of a statement, followed by three arguments I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: The domestic equity market has become supervolatile  and converted the psychology of every market participant into fear. Greed and fear continue to alternate in the market, like the two sides of a coin. To a seasoned player, there seems to be nothing new as such instances of panic-selling often occur time and again. Why? Arguments: I. Since demonetisation, herd mentality had jacked up financials, banks and NBFC stocks to great heights on the pretext of financial inclusion and formalisation of the economy. This caused the financials gain disproportionate share in Nifty50 at 35 per cent of the free float market capitalisation, which was unheard of in the past.  II. The domestic market seems to be deeply oversold and can rebound on any good news. The Nifty50 has taken long-term support at the three-year trend line, which makes a case for the correction to near its end. III. Investors, therefore, should not panic and sell off shares. Instead they should do the reverse and gather the courage to pump in more money into the market by picking quality stocks or investing in ETFs for more stable returns. 
Read the following passage carefully and choose the most appropriate answer to the question out of the four alternatives.
Most economists in the United States seem captivated by the spell of the free market. Consequently, nothing seems good or normal that does notaccord with the requirements of the free market. A price that is determined by the seller or, for that matter (for that matter: so far as that isconcerned), established by anyone other than the aggregate of consumers seems pernicious. Accordingly, it requires a major act of will to thinkof price-fixing (the determination of prices by the seller) as both "normal" and having a valuable economic function. In fact, price-fixing is normalin all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixingthat it requires. Modern industrial planning requires and rewards great size. Hence, a comparatively small number of large firms will be competingfor the same group of consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products for morethan its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with fullconsideration of the needs that it has in common with the other large firms competing for the same customers. Who, according to the economists, are the right group of people to set the price of a commodity?
Read the following passage carefully and choose the most appropriate answer to the question out of the four alternatives.
Most economists in the United States seem captivated by the spell of the free market. Consequently, nothing seems good or normal that does notaccord with the requirements of the free market. A price that is determined by the seller or, for that matter (for that matter: so far as that isconcerned), established by anyone other than the aggregate of consumers seems pernicious. Accordingly, it requires a major act of will to thinkof price-fixing (the determination of prices by the seller) as both "normal" and having a valuable economic function. In fact, price-fixing is normalin all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixingthat it requires. Modern industrial planning requires and rewards great size. Hence, a comparatively small number of large firms will be competingfor the same group of consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products for morethan its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with fullconsideration of the needs that it has in common with the other large firms competing for the same customers. Price-fixing is a phenomenon that is normal in -
Read the following passage carefully and choose the most appropriate answer to the question out of the four alternatives.
Most economists in the United States seem captivated by the spell of the free market. Consequently, nothing seems good or normal that does notaccord with the requirements of the free market. A price that is determined by the seller or, for that matter (for that matter: so far as that isconcerned), established by anyone other than the aggregate of consumers seems pernicious. Accordingly, it requires a major act of will to thinkof price-fixing (the determination of prices by the seller) as both "normal" and having a valuable economic function. In fact, price-fixing is normalin all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixingthat it requires. Modern industrial planning requires and rewards great size. Hence, a comparatively small number of large firms will be competingfor the same group of consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products for morethan its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with fullconsideration of the needs that it has in common with the other large firms competing for the same customers. A major act of will will bring about price-fixing that will be seen as -
Read the following passage carefully and choose the most appropriate answer to the question out of the four alternatives.
Most economists in the United States seem captivated by the spell of the free market. Consequently, nothing seems good or normal that does notaccord with the requirements of the free market. A price that is determined by the seller or, for that matter (for that matter: so far as that isconcerned), established by anyone other than the aggregate of consumers seems pernicious. Accordingly, it requires a major act of will to thinkof price-fixing (the determination of prices by the seller) as both "normal" and having a valuable economic function. In fact, price-fixing is normalin all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixingthat it requires. Modern industrial planning requires and rewards great size. Hence, a comparatively small number of large firms will be competingfor the same group of consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products for morethan its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with fullconsideration of the needs that it has in common with the other large firms competing for the same customers. Selling a commodity at a price that is not more than that charged by competitors is -
Read the following passage carefully and choose the most appropriate answer to the question out of the four alternatives.
Most economists in the United States seem captivated by the spell of the free market. Consequently, nothing seems good or normal that does notaccord with the requirements of the free market. A price that is determined by the seller or, for that matter (for that matter: so far as that isconcerned), established by anyone other than the aggregate of consumers seems pernicious. Accordingly, it requires a major act of will to thinkof price-fixing (the determination of prices by the seller) as both "normal" and having a valuable economic function. In fact, price-fixing is normalin all industrialized societies because the industrial system itself provides, as an effortless consequence of its own development, the price-fixingthat it requires. Modern industrial planning requires and rewards great size. Hence, a comparatively small number of large firms will be competingfor the same group of consumers. That each large firm will act with consideration of its own needs and thus avoid selling its products for morethan its competitors charge is commonly recognized by advocates of free-market economic theories. But each large firm will also act with fullconsideration of the needs that it has in common with the other large firms competing for the same customers.
What does not seem as not good or normal in the context of this essay?
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Indian Finance Minister Arun Jaitley said on Monday that the government is ready to ensure credit is available to non-banking financial companies (NBFCs), just a day after the market regulator and the central bank sought to calm skittish investors. Jaitley's assurances followed panic selling in the equity market on Friday that pushed the benchmark Nifty Index more than three percent lower in less than 30 minutes. It later recovered to end the day down 0.81 percent.  Courses of action: I. The sell-off was sparked by news that a large fund manager sold short-term bonds issued by Indian NBFC Dewan Housing Finance Corp at a sharp discount, raising fears of wider liquidity problem among NBFCs.  II. Indian equity markets have hit record highs this year despite sell-offs in domestic bonds and weakness in the rupee that has made it Asia's worst-performing currency this year.  III. A sell-off in equity markets, which have been one of the few bright spots in the economy, could further dent Modi's popularity among some of the small business and trading community, a core base of BJP supporters, who were already stung by two of his largest reform moves - demonetization and a nationwide Goods and Services Tax (GST). 
A passage is given with five questions following it. Read the passage carefully and select the best answer to each question out of the given fouralternatives. Teaching about compassion and empathy in schools can help deal with problems of climate change and environmental degradation,” says Barbara Maas, secretary,
Standing Committee for Environment and Conservation, International Buddhist Confederation (IBC). She was in New Delhi to participate in the IBCs governing
council meeting, December 10-11, 2017. “We started an awareness campaign in the year 2005-2006 with H H The Dalai Lama when we learnt that tiger skins were
being traded in China and Tibet. At that time, I was not a Buddhist; I wrote to the Dalai Lama asking him to say that this is harmful and he wrote back to say, “We
will stop this.” He used very strong words during the Kalachakra in 2006, when he said, If he sees people wearing fur and skins, he doesnt feel like living. This sent
huge shock waves in the Himalayan community. Within six months, in Lhasa, people ripped the fur trim of their tubba, the traditional Tibetan dress. The messenger was ideal and the audience was receptive,” says Maas who is a conservationist. She has studied the battered foxs behavioral ecology in Serengeti,Africa. She heads the endangered species conservation at the Nature and Biodiversity Conservation Union (NABU) International Foundation for Nature, Berlin. “I met Samdhong Rinpoche, The Karmapa, HH the Dalai Lama and Geshe Lhakdor and I thought, if by being a Buddhist, you become like this, I am going for it, “says Maas, who led the IBC initiative for including the Buddhist perspective to the global discourse on climate change by presenting the statement, The Time to Act is Now: a Buddhist Declaration on Climate Change, at COP21 in Paris. “It was for the first time in the history of Buddhism that leaders of different sanghas came together to take a stand on anything! The statement lists a couple of important things: the first is that we amass things that we dont need; there is overpopulation; we need to live with contentment and deal with each other and the environment with love and compassion,” elaborates Maas. She is an ardent advocate of a vegan diet because “consuming meat and milk globally contributes more to climate change than all "transport in the world.” Turning vegetarian or vegan usually requires complete change of perspective before one gives up eating their favorite food. What are the Buddhist ways to bringabout this kind of change at the individual level? “To change our behavior, Buddhism is an ideal vehicle; it made me a more contented person,” says Maas, who grewup in Germany, as a sausage chomping, meat-loving individual. She says, “If I can change, so can anybody”. According to the passage, how can studying compassion and empathy in schools help?