explain the nature and causes of business risks.
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13
Answer:
Business risk refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events. ... Economic causes : These includes uncertainties relating to demand for goods, competition, price, collection of dues from customers, change to technology or method of production, etc.
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Answered by
43
Answer:
business risk can be defined as uncertainties and un accepted events picture beyond control In simple words we can say business risk means a chance of incurring lasses or less profite than expected. These factors can not controlled by business man and this can result in a decline in profit aur can also lead to a loss.
opportunities for gains are hidden in business risks.
business risks depend on time.
business risk depend on size of business enterprise.
business risk depend on the nature of business.
business risk depend on the term of salls.
business risk depend on the degree of competition.
business risk depend on the competence of management.
it is difficult ,if not impossible to forecast the possibility of the accuracy of the business risk.
business risk is too large extent mid point on the age of business enterprise.
business risk are, by and large, unavoidable thought the possibilities of un favourable consequences associated with business risk could be minimised.
Causes of business risk are-
natural cause
political cause
social cause
economic cause
competitive cause
technological cause
miscellaneous cause
managerial cause
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