Question

No business is risk free in the light of this statement, explain the concept of business risk and its any three causes.

Answer 1

There are two main causes of business risk;
Market which produces price variability for both outputs and inputs and uncertain availability and quality of the latter.
Biophysical environment which produces yields or production variation.
CAUSES OF BUSINESS RISK;
Competition by different producers and companies.
Input costs,fluctuation of price results unto risk in business.
Overall economic climate which results unto the reduction of suppliers because of low production rate.

Answer 2

There are two main causes of business risk;

Market which produces price variability for both outputs and inputs and uncertain availability and quality of the latter.

Biophysical environment which produces yields or production variation.

CAUSES OF BUSINESS RISK;

Competition by different producers and companies.

Input costs,fluctuation of price results unto risk in business.

Overall economic climate which results unto the reduction of suppliers because of low production rate