What is business risk? Explain various causes of business risk? 05

1.	What is business risk? Explain various causes of business risk? 05
Answer» Business riskis the possibility a company will have lower than anticipated profits or experience a loss rather than taking a profit.Business riskis influenced by numerous factors, including sales volume, per-unit price, input costs, competition, the overall economic climate and government regulations. The maincauses of business riskare as under: Natural Factors. There are certain nature factors like floods, earthquake etc. which can damage thebusiness. Competition. Change in demand for the product. Use of Modern Technology. HumanCauses of Business Risk. Change in Government Policies. Mismanagement.

Answer»

Business riskis the possibility a company will have lower than anticipated profits or experience a loss rather than taking a profit.Business riskis influenced by numerous factors, including sales volume, per-unit price, input costs, competition, the overall economic climate and government regulations.

The maincauses of business riskare as under:

Natural Factors. There are certain nature factors like floods, earthquake etc. which can damage thebusiness.

Competition.

Change in demand for the product.

Use of Modern Technology.

HumanCauses of Business Risk.

Change in Government Policies.

Mismanagement.

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