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.
Frequently asked questions
What is the correct answer to this question?
The possibility of loss or an uncertain outcome
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesWrite a review / Rate this question
Student Reviews
No published reviews yet.
