What does risk mean in business?
Answer and explanation
Correct answer: Chance of loss or uncertain result
Business risk is the possibility that actual results may differ from expected results, including the possibility of loss. Demand, prices, costs, competition, and other conditions can change, so profit is not guaranteed. Therefore, fixed profit, avoiding effort, or not speaking to customers is not the meaning of risk.
Frequently asked questions
What is the correct answer to this question?
Chance of loss or uncertain result
Why is this the correct answer?
Business risk is the possibility that actual results may differ from expected results, including the possibility of loss. Demand, prices, costs, competition, and other conditions can change, so profit is not guaranteed. Therefore, fixed profit, avoiding effort, or not speaking to customers is not the meaning of risk.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
