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What does risk mean in business?

Answer and explanation

Correct answer: The possibility of loss or an uncertain outcome

Business risk is the possibility that actual results may differ from expected results, including the possibility of loss. It can arise from uncertain demand, changing prices, competition, operational problems, regulation, or other factors. Risk does not mean that failure is certain; it means the outcome cannot be known with complete confidence. Entrepreneurs therefore assess information and take calculated risks. Option A expresses this meaning correctly.

Related tags

Business-RiskUncertaintyEntrepreneurshipBusiness RiskBusinessTrade And CommerceBusiness Trade And CommerceBusiness StudiesClass 11 Mcq

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