explain the elements affecting business risk
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Every business is subject to risks that affect cash flows and profitability. Some come from internal weaknesses; some come from external threats; and some arise from positive sources, such as expansion and growth opportunities. Although risks change over time and vary between businesses and industries, the factors that affect business risks generally remain the same. To successfully mitigate and manage business risks, it’s vital to understand these factors.
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ʙᴜꜱɪɴᴇꜱꜱ ʀɪꜱᴋ ɪꜱ ɪɴꜰʟᴜᴇɴᴄᴇᴅ ʙʏ ᴀ ɴᴜᴍʙᴇʀ ᴏꜰ ᴅɪꜰꜰᴇʀᴇɴᴛ ꜰᴀᴄᴛᴏʀꜱ ɪɴᴄʟᴜᴅɪɴɢ: ᴄᴏɴꜱᴜᴍᴇʀ ᴘʀᴇꜰᴇʀᴇɴᴄᴇꜱ, ᴅᴇᴍᴀɴᴅ, ᴀɴᴅ ꜱᴀʟᴇꜱ ᴠᴏʟᴜᴍᴇꜱ. ᴘᴇʀ-ᴜɴɪᴛ ᴘʀɪᴄᴇ ᴀɴᴅ ɪɴᴘᴜᴛ ᴄᴏꜱᴛꜱ. ᴄᴏᴍᴘᴇᴛɪᴛɪᴏɴ.
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