What is business risk? Explain risk and uncertainly related to busines

1.	What is business risk? Explain risk and uncertainly related to business.
Answer» Business risk: The risk of uncertain profit or even loss that lies while doing business is called business risk. Risk and uncertainty: There always lies risk of uncertainty in business. Risk can be either man-made or natural. Man-made risks include fire, accident in factory, strike of employees, riots, robbery, thefts, change in preferences of customers, decreased demand, changes in life-style, taste or habits, competition, changes in technology, etc. On the other hand natural risks could be earthquake, flood, tsunami, etc. A business may get badly affected, may make huge losses and may even get shut down due to such risks.

What is business risk? Explain risk and uncertainly related to business.

Answer»

Business risk:

The risk of uncertain profit or even loss that lies while doing business is called business risk.

Risk and uncertainty:

There always lies risk of uncertainty in business.
Risk can be either man-made or natural.
Man-made risks include fire, accident in factory, strike of employees, riots, robbery, thefts, change in preferences of customers, decreased demand, changes in life-style, taste or habits, competition, changes in technology, etc.
On the other hand natural risks could be earthquake, flood, tsunami, etc.
A business may get badly affected, may make huge losses and may even get shut down due to such risks.