Question

name and explain the two characteristics of business which involves possiblity of loss​

Answer 1

The two characteristics of business which involve possibility of loss are :

(i) Uncertainty of return : There is always uncertainty of return and possibility of loss . Every businessman invests money in his / her business with the objective of earning profit . however , there is always a possibility of loss.

(ii) Element of risk : Risk implies the uncertainty of reward or the possibility of loss . there is always some element of risk involved in business because the future is uncertain . The risks are related to changes in consumer taste and fashions , strikes or lock - outs at the work place , increased competition , fire , theft , accidents , etc.

Answer 2

(i) Uncertainty of return : There is always uncertainty of return and possibility of loss . ... (ii) Element of risk : Risk implies the uncertainty of reward or the possibility of loss .