Governmental risk is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower-than-projected rate of return. True/false

Question

Business

Helen

21 September, 20:36

Governmental risk is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower-than-projected rate of return. True/false

+5

Answers (1)

Know the Answer?

Albert Bauer · Answer 1

Answer:TRUE

Explanation: Risk is an activity which has the capability of causing harm or hazard to people, business entities, environment or properties.

Risks can be in different forms both in private organizations or in public Organisations, it can also present itself in different forms.

When the political forces within an Economy force or cause business organizations or investors to lose part or all of their investments or made to accept a lower than the projected rate of return it is a RISK.