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InterviewSolution
| 1. |
Name and explain the two characteristics of business which involve possibility of loss. |
| Answer» The two characteristics of business which involve possibility of loss are :(i) Uncertainty of return : There is always uncertainty of return and possibility of loss . Every businessman invests money in his / her business with the objective of earning profit . however , there is always a possibility of loss.(ii) Element of risk : Risk implies the uncertainty of reward or the possibility of loss . there is always some element of risk involved in business because the future is uncertain . The risks are related to changes in consumer taste and fashions , strikes or lock - outs at the work place , increased competition , fire , theft , accidents , etc. | |