Which of the following is an exogenous shock?

• A. A change in management policy
• B. A volcanic eruption
• C. A predictable seasonal sales pattern
• D. A planned marketing campaign

Answer: (B)

An exogenous shock is an external, unexpected event that disrupts a business from outside and is not under the firm’s control. A volcanic eruption fits this because it comes from the environment, is outside the company’s control, and is unplanned, often causing immediate disruption to production, transport, and demand. The other scenarios are not exogenous shocks: a change in management policy is an internal decision by the business; a predictable seasonal sales pattern is a regular, anticipated fluctuation in demand; a planned marketing campaign is a deliberate internal activity.