Question

explain the concept of business risk and it's causes.......​

Answer 1

Answer:

Business risk refers to the uncertainties that leads to unprecedented profits or losses.

The causes may be as follows:

Natural Calamity- Natural calamities like flood, earthquake, famine cannot be controlled. Such calamities result in a great loss of property and resources.

Economic Causes- These include change in the demand or supply, change in prices, competition, change in technology etc. Rise in lending interest, taxes etc are financial problems which are also considered in these.

Other causes-These may include fluctuations in exchange rates, political disturbances or any such unforeseen events.

Answer 2

Answer:

$\huge{\fbox\red{Business risk }}$

term business risks refers to the possibility of a commercial business making inadequate profits due to uncertainties - for example: changes in tastes, changing preferences of consumers, strikes, increased competition, changes in government policy, obsolescence etc

Explanation:

$\huge\blue{Cause}$

Natural causes of risk include flooding, earthquakes, cyclones, and other natural disasters that can lead to the loss of lives and property.