Anuradha runs a fast food outlet in one of the shopping malls in Faridabad. Over the years, her business has earned good reputation and high profits. However, over the past one month she has realised that her clientele is gradually declining. On introspection, she identified two main reasons for the same. First, a new fast food joint has opened up in the same mall and it is drawing huge crowd. Secondly, one of her chief chef is facing some health issues and is not able to work towards the business in the same dedicated manner as earlier. In context of the given case identify and explain the causes of business risk mentioned in the given paragraph. Also, quote the relevant lines.
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Explanation:
Business risk can be defined as uncertainties or unexpected events, which are beyond control. In simple words, we can say business risk means a chance of incurring losses or less profit than expected. These factors cannot be controlled by the businessmen and these can result in a decline in profit or can also lead to a loss.
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