This is an example of business risks due to economic cause
(a) Earthquake
(b) Lock out in a factory
(c) Change in government policy
(d) Mechanical defects in machinery
Answers
Answer:
Such calamities result in a great loss of property and resources. Economic Causes: These include change in the demand or supply, change in prices, competition, change in technology etc. Rise in lending interest, taxes etc are financial problems which are also considered in these.
Answer:
Change in government policy
Explanation:
Economic changes, such as rising competition, shifting market dynamics, rising prices for raw materials, production costs, and wages, are the root causes of company risk.
Risk associated with the economy in which a corporation operates is referred to as economic risk. As a result, if the company is based abroad, the economic conditions of that country will have an impact on the operations of the business there.
Therefore, this idea has something to do with global economics. Businesses based abroad face greater risks than those located within the domestic market. Such corporate entities with investments across numerous nations are referred to as multinational companies (MNC).
For a project or business operating abroad to be successful, risk estimation is very crucial.
Effective risk management is made possible for the organization by quantifying or listing the risk.
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