BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Snowstorm
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Accident
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Rising prices
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Government intervention
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Detailed explanation-1: -Natural causes: Natural causes of business risk include natural calamities like earthquake, tsunami, tornado, famine, floods and drought, etc. Humans and businesses do not have a control over the natural causes and there certainly isn’t any kind of preparation that can be undertaken for such a business risk.
Detailed explanation-2: -Strikes are not considered natural cause of business risk because nature is not involved with them but earthquake, rains, famine are all natural phenomenon.
Detailed explanation-3: -Sports betting, investing in stocks, and buying junk bonds are some examples of activities that involve speculative risk.
Detailed explanation-4: -damage by fire, flood or other natural disasters. unexpected financial loss due to an economic downturn, or bankruptcy of other businesses that owe you money. loss of important suppliers or customers. decrease in market share because new competitors or products enter the market.