BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The risk due to the under utilization of production capacity and resources and thereby lowering of revenue is called ____
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Business Risk
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Financial Risk
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Production Risk
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None of the Above
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Explanation:
Detailed explanation-1: -Business risk usually occurs in one of four ways: strategic risk, compliance risk, operational risk, and reputational risk.
Detailed explanation-2: -Types of Risks Widely, risks can be classified into three types: Business Risk, Non-Business Risk, and Financial Risk. Business Risk: These types of risks are taken by business enterprises themselves in order to maximize shareholder value and profits.
Detailed explanation-3: -Operational risk is the risk of loss resulting from ineffective or failed internal processes, people, systems, or external events that can disrupt the flow of business operations. The losses can be directly or indirectly financial.
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