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AAFM Exam GLO_CWM_LVL_1 Topic 2 Question 89 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam
Question #: 89
Topic #: 2
[All GLO_CWM_LVL_1 Questions]

P Ltd sets the target to produce 1000 tones of steel during the next six months to recover the cost but there is a possibility that due to strikes and lockouts the targeted output may not be archived. What type of risk is associated with the production process?

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Suggested Answer: B

by Tambra at Sep 19, 2024, 12:34 PM

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Bulah
6 days ago
I think the correct answer is B) Speculative Risk. The question mentions the possibility of not achieving the targeted output due to strikes and lockouts, which is a speculative risk that can result in either a gain or a loss.
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Altha
12 days ago
But what about Speculative Risk? Isn't there a chance to make a profit despite the uncertainty?
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Johnetta
15 days ago
I agree with Larue, because strikes and lockouts are unpredictable events.
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Larue
22 days ago
I think the risk associated with the production process is Pure Risk.
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