Question

Which item does not cause any business risk?
a) Breakdown of machinery b)Efficient management
c) Riot d)Changing government policy

Answer 1

Answer:

b.efficient management

Answer 2

The item which does not cause any business risk is b) Efficient management.

Explanation for the answer:

• Business risks are the chances or possibility of a commercial business making inadequate profits due to some uncertainties which causes business risk.
• There are numerous reasons of risks present.
• These risks may occur due to various reasons such as fluctuations in market prices, errors in sales forecasting, changing trends and fashions etc.
• Among all of the options the item does not cause any business risk is b) Efficient management.

Explanation for the Incorrect options:

• Breakdown of machinery causes Business risk as it causes the work to stop and there will be a chances of losses.
• Theft, flood, earthquakes, cyclones, drought, war, civil riots etc are some of the business risk present everywhere.
• Changing government policy also is a major cause of business risk. Some of them are Increasing Competition, More Demanding Customers , Rapidly Changing Technological Environment etc.