Which factor is primarily associated with unsystematic risk?

Unsystematic risk is primarily associated with company-specific events or issues that can affect a firm's performance independently of the market as a whole. This type of risk arises from factors that are specific to an individual company or industry, such as management decisions, product recalls, technological changes, or competitive pressures. Unlike systematic risk, which impacts the entire market (like economic changes or interest rate fluctuations), unsystematic risk can often be mitigated through diversification. By holding a variety of investments, an investor can reduce the impact of any single company's poor performance on the overall portfolio.

The other options represent factors that contribute to systematic risk, which is market-wide and affects all companies to some degree. Market-wide economic changes, legal regulations, and interest rate fluctuations are all external factors that cannot be eliminated through diversification, as they influence the broader financial environment in which all businesses operate.