What is business risk? What is its nature?
Answers
Answered by
0
Answer:
Business risk is the possibilities a company will have lower than anticipated profits or experience a loss rather than taking a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, and the overall economic climate and government regulations.
Answered by
0
BUSINESS RISK
Business risk refers to the probability of losses or inadequate profits due to uncertainties or unexpected events which are beyond control.
In simple words, we can say this is risk means a chance of enduring losses or less profit than expected.
NATURE OF BUSINESS RISK
- Business risk arises due to uncertainties
- Risk is an essential part of every business
- Degree of risk depends upon the nature and size of business
- Profit is the reward for bearing the risk
Similar questions