Question

Lamboria Republic is facing a high rate of inflation, and the government debt in the country is also high. As a result, the country's business environment is beginning to deteriorate, and the profits of the business enterprises are hurt. According to this information, Lamboria Republic is facing which of the following type of risk?
Multiple Choice
a. legal
b. demographic
c. economic
d. ethical
e. ethnographic

Answer 1

Answer: (C) Economic

Explanation:

 The economic risk is one of the type of management risk that helps in understanding the various types of macroeconomics conditions such as political stability and the different types of government rules that basically affecting the investment process.

The impact of the economics risk is that it basically affecting the economy of the country which basically deals with the risk of the economics.

According to the given question, Lamboria is basically facing the economic risk based on the given information or data that the inflation rate and also debt of the government are high.

 Therefore, Option (C) is correct answer.