Business Risk

Business RiskBusiness Risk implies uncertainty of profits or danger of loss to some unforseen events in future. It means possibility of of unfavourable occurance. It may be defined as the possibility of an adverse deviation from a desired outcome that is expected.

Business risk is influenced by numerous factors:

Sales volumePer-unit priceInput costsCompetitionOverall economic climateGovernment regulationsNature:

Uncertainty Essential part of business Profit is the reward Degree of risk and the size of business Cannot be evaluated easilyCauses:

Natural Causes Human Causes Economic Causes Physical Causes Technological Causes Political Causes