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Business risk |
| Answer» The term ‘business risk’ refer to the possibility of inadequate profits or even losses, due to uncertainties or unexpected events. For example, the demand for a particular product may decline due to change in tastes and preferences of consumers. Decrease in demand will result in lesser sale and thereby lesser profits.Nature of business risk : The nature of business risks can be understood in terms of its peculiar characteristics:\tBusiness risks arise due to uncertainties.\tRisk is an essential part of every business.\tDegree of risk depends mainly upon the nature and size of business.\tProfit is the reward for risk taking. | |