Ms. Shruti wants to start a retail business of fashionable items. But she is hesitating as she is
aware of risk which are inherentin every business. She approaches her friend, Miss. Pankhu, who is the
owner of a retail shop. Miss Pankhu advises her to opt for business and suggest certain methods to
minimize risk.
a. Broadly business risk may be of two types. In the instant case, under which type does the business of Miss Shruti come?Also name the other type.
b. Name the characteristic or nature of business risk which is indicated in the business of Miss Shruti.
c. Business risks arise due to variety of causes. Which type of causes covered the business of Miss Shruti and how?
d. Give two suggestions which might be given by Miss Pankhu to deal with risk situations.
Answers
Answer:
I didn't understand this question it is so big question
Answer:
a) The type of business risk mentioned here is- Speculative risk. The other type is Pure risks.
b.) The types of causes that Ms. Stuti's business covers is- Economic and Human causes because here she is afraid that if she started a business and due to some carelessness if any risk occurs then she would have to bear it and economic causes like competition can lead to closure of business.
c.) Ms. Pankhu may have suggested that-
The first is that Risk is an essential part of business.
Also, Profit is the reward for risk taking. i.e if she takes risk to start a business then she would earn profits also so the higher risk is involved in a business the more profit will be earned by Ms. Stuti.
d.) The values exhibited by Ms. Pankhu are- Helpful and Caring, Suggestive by nature.