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A business is started and run …

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A business is started and run for earning profit but there is a possibility that the Business may not have profit at all and loss will incurred mention the element with then and explain any four factors responsible for this?

Posted by K R $ Malun Hai Na 4 years, 3 months ago

CBSE > Class 11 > Business Studies

1 answers

Arinan Aggarwal 4 years, 2 months ago

This is called business risk . Business risk is the probability of losses due to unforseen circumstances and events. They may cause due to following four reasons-: 1)natural cause It is the risk of loss due to natural calamities and activities such as earthquake,flood,etc. 2)human cause It is the risk of loss due to human activities such as theft,loss due to mishandling,etc. 3)economic cause It is the risk of loss due to change or loss in economic value such as change in trend,loss of demand,etc. 4)physical cause It is the risk of loss due to damage of goods such as fire broke out In a factory,etc.

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CBSE > Class 11 > Business Studies

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