Question

Which of these is an example of an enterprise risk?

1) A glob epidemic
2) Unexpected competition from another industry
3) An industry-wide cost increase
4) A merger with or acquisition of another enterprise

Answer 1

A merger with or acquisition of another enterprise is an example of an enterprise risk.

Step-by-step explanation:

An example of an enterprise risk is a merger with or acquisition of another enterprise. When two companies merge or one company acquires another, there are potential risks involved such as integration challenges, cultural clashes, and financial complications. This can impact the success and stability of both companies.