Question

Which of the following best describes the industry risk characteristic called "dependence"? A. If Industry G...

Which of the following best describes the industry risk characteristic called "dependence"?

A. If Industry G is dependent upon Industry H, a lender to Industry G need only be concerned about H's industry risks.

B. If Industry G is dependent upon Industry H, a lender to a company in Industry G must consider not only G's industry risks, but H's as well.

C. If Industry G depends on multiple industries for its' supplies, the more risk it has for interruptions to occur in the supply chain.

D. If Industry G is dependent upon Industry H, a lender to either industry need only be concerned about the significant risks common to both industries.

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