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Q.24 Katherine wants to start a retail business of fashionable items. Change in taste
and preference of customers may result in loss in such type of business. She is
hesitating as she is aware of risks which are inherent in every business. She
approaches her friend Kristina who is the owner of a retail shop. Kristina advises her
to go ahead with her idea as she will get profit as return for undertaking risk. She
also told her that some risks in business can be insured by taking insurance policy.
On the basis of the given information, answer the following:-
a) What is Business risk?
b) Identify the main features of business risk discussed in the above case by
quoting lines for the identified feature
c) Is change in taste and preference of customers, pure risk or speculative,
Why?
Answers
Answer:
Pueuewo...
Q.24 Katherine wants to start a retail business of fashionable items. Change in taste
and preference of customers may result in loss in such type of business. She is
hesitating as she is aware of risks which are inherent in every business. She
approaches her friend Kristina who is the owner of a retail shop. Kristina advises her
to go ahead with her idea as she will get profit as return for undertaking risk. She
also told her that some risks in business can be insured by taking insurance policy.
On the basis of the given information, answer the following:-
a) What is Business risk?
b) Identify the main features of business risk discussed in the above case by
quoting lines for the identified feature
c) Is change in taste and preference of customers, pure risk or speculative,
Why?Pueuewo...
Q.24 Katherine wants to start a retail business of fashionable items. Change in taste
and preference of customers may result in loss in such type of business. She is
hesitating as she is aware of risks which are inherent in every business. She
approaches her friend Kristina who is the owner of a retail shop. Kristina advises her
to go ahead with her idea as she will get profit as return for undertaking risk. She
also told her that some risks in busi