Question

state any two causes of business risk​

Answer 1

Answer:

Business risk refers to a threat to the company’s ability to achieve its financial goals. In business, risk means that a company’s or an organization’s plans may not turn out as originally planned or that it may not meet its target or achieve its goals.

Such risks cannot always be blamed on the owner of the company, as risk can be influenced by various external factors, which may include rising prices of raw materials for production, growing competition, or changes or additions to existing government regulations.

Answer 2

Economic causes :-

Economic causes are related to a chance of loss due to change in market condition. There can be price fluctuations in the market, there can be changed in fashion, taste, preferences and demands of customers. There can be changed in the degree of competition. All these have a direct impact on the earnings of the business. Even change in government policy affects the business a lot.

Physical causes :-

All the causes which result in damage of acids are considered as physical causes, for example, change in technology may result in machinery being out dated, use of old Technology, mechanical defects may also resulting damage of acids such as posting of boiler, accident to employee etc.