Question

Identify the causes of risk highlighted in the given statements:
a) Higher interest rates increase the cost of production, reduces the purchasing power of consumers.
b) Taj hotel in Mumbai had to shut its operation for than six months due to 26/11 terror attack.
c) Thousands of businessman had to suffer heavy losses due to Gujrat earthquake on 26January 2001.
d) Perishable goods such as ice cream and milk may be spoiled because of breakdown of cooling machine of refrigerator.
e) An increase in excise duty or custom duty on a product may reduce the profit margin of a business undertakings.

Answer 1

Answer:

a) market environment

b) terror attack

c) natural disasters

d) technical error

e) internal business environmental.

Answer 2

Answer:

a) Economic cause (change in price )

b) Other causes

c)Natural causes(geological changes)

d) Other causes(mechanical causes)

e)Economic causes(change in price)