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Aalok factory was completely destroyed due to floods Identify the cases of business risk indicated in the given cases

Answer»

The business risk could be :Risk is the chance of loss. It is the possibility of some un-favourable occurrence.Risk may be defined as uncertainty in regard to cost, loss, or damage.Risk can be high according to the damage cause by flood.Explanation:Natural Causes: Risks which arise due to the actions of Nature (and hence uncontrollable) are called natural risks. For example, risk of rainfall not OCCURRING on TIME or excessive rain­fall CAUSING flood is a serious risk for farmers. Again, there may be risk of hail storm destroying crops in the field.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.



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