Organizational Behavior Paper 23

Correct answer: (A) Economic resources

Correct answer: (C)
Risks that can be reduced by diversification (also called diversifiable risk or unsystematic risk) are risks that relate to a particular undertaking, firm or industry, and typically are not associated with macroeconomic conditions. Diversifiable risk are mitigated by engaging in multiple different investments or undertakings so that an unexpected unfavorable outcome of one investment or undertaking will represent only a small portion of all investments or undertakings and so that unfavorable outcomes on some investments or undertakings will be offset by favorable outcomes on other investments or undertakings. Labor strikes typically are peculiar to a particular undertaking, plant, firm or industry and are, therefore, diversifiable by having labor forces in other undertakings, plants, or industries.