What is business risk? What is its nature?

Asked by Last Modified  

Follow 1
Answer

Please enter your answer

Tutor

Business risk is the possibility a company will have lower than anticipated profits or experience a loss rather than taking a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, the overall economic climate and government regulations....
read more
Business risk is the possibility a company will have lower than anticipated profits or experience a loss rather than taking a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, the overall economic climate and government regulations. A company with a higher business risk should choose a capital structure that has a lower debt ratio to ensure it can meet its financial obligations at all times. Business risk may be defined in terms of the possibility of occurrence of un-favourable events; which maximize chances of losses and minimize chances for gain, in business. read less
Comments

Related Questions

Discuss any three advantages of international business.
The advantages of international business are discussed below: i. Employment: International business helps in increasing employment opportunities in the export-oriented industries. ii. Growth of economy:...
Rajeev
0 0
7
I am a storyteller. I am willing to train Business people in storytelling? How do you think should I go about it?
Hi Alvin, You can create profile and post your requirement on portal and you will surly get the response. Thank!
Alvin Raja
0 0
8
What advantages a life insurance policy can give?
Life Insurance is a policy which will safeguard financial interest of your immediate family members (nominee) in case of any untoward incident (like death of yours). Secondly, it is also used as reducing your tax liability.
Archit
0 0
8
Why is cellular phone or cellphone called a mobile phone?
Mobile means movable or moving. Anything which is moving or can be moved is called mobile. So, when we talk about cell phone, we see that it is a communication device, it has no wire, it is not fixed,...
Mohammad
0 0
5
Elaborate the steps involved in on-line trading.
Steps involved in online trading are:1.Registration: Before online shopping, one has to register with the online vendor by filling up a registration form. Registration means that you have an 'account'...
Jitender
0 0
6

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons



Different types/kinds of banks in India - Class 11
Different Types of Banks- 1. Central Bank- The central bank is the apex bank in banking structure of any country. The Central Bank controls the flow of currency in the economy. It regulates the other...


Recommended Articles

Quality education does not only help children to get a successful career and life, but it also hugely contributes to society. The formal education of every child starts from school. Although there are numerous schools, parents find it challenging to choose the right one that would fit their child. It is difficult for them...

Read full article >

While schools provide formal education to the children, the home is where they start learning about things informally. Parents think that schools will take the initiative to educate their children. Well, this is partially true, as parents also play an essential role in bringing up their child. For the development of particular...

Read full article >

With the mushrooming of international and private schools, it may seem that the education system of India is healthy. In reality, only 29% of children are sent to the private schools, while the remaining head for government or state funded education. So, to check the reality of Indian education system it is better to look...

Read full article >

Learning for every child starts from a very young age. While the formal methods include school curriculums and private lessons, the informal methods include dancing, music, drawing, and various fun-filling activities. Playing games and practising these types of activities helps the children get out of boredom and...

Read full article >

Looking for Class 11 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you