Question

What is the primary risk associated with over-reliance on a single funding source?

• A. Reduced flexibility in investment strategies.
• B. The organization could face a major financial crisis if that source withdraws its support.
• C. Difficulty in attracting new investors.
• D. Increased administrative burden for compliance.

Answer 1

Answer:

B. The organization could face a major financial crisis if that source withdraws its support.

• Dependency on a single source creates significant financial vulnerability, as the organization could face a severe crisis if that funding is suddenly lost.