Explain one external threat for ABC.

• A. Volatile gold prices could reduce revenue and make returns from the e-waste business less predictable
• B. Stable labor costs
• C. Regulatory certainty
• D. Strong consumer demand

Answer: (C)

External threats come from outside the business and can disrupt profits or operations. Regulatory certainty refers to the government’s rules being clear and consistently applied. That external framework affects ABC because it comes from outside the company and can impose costs, compliance requirements, or constraints. If regulations change, or even if enforcement becomes stricter than expected, ABC could face higher operating costs, limited strategic flexibility, or penalties, all of which threaten performance. The other options describe internal factors or favorable external conditions, or price volatility that doesn’t capture the ongoing external policy risk as directly.