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In the Private Sector, there are many ____________ to be made by Business managers regarding which "projects" to borrow for and which "projects" to invest in. These often contain a great deal of risk and uncertainty as well as the potential for benefits (profits).

User James Daly
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Complete Question:

Risk (the possibility of costs being more than originally perceived)

Uncertainty (the possibility of benefits being less than originally perceived)

both a. and b.

none of the above

Answer and Explanations:

Both a and b

It is a basic principle of finance. The higher the risk the higher is the profit. Therefore, business managers are required to take high risks that involves uncertainty. Because this leads to more profit.

User Roylaurie
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