Uncertainty or unpredictability of the future results


Characteristics of risk as they relate to the uncertainty or unpredictability of the future results of a company include:

a) the greater the risk, the higher the rate of return expected by investors

b) risk increases as the range and timeframe within which future results are likely to fall increases

c) risk increases as the range and timeframe within which future results are likely to fall decreases

d) the greater the risk, the higher the rate of return expected by creditors

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Accounting Basics: Uncertainty or unpredictability of the future results
Reference No:- TGS092474

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