INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Financial loss from investing time and money to comply with accounting standards is an example of which strategic risk:
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Changing customer needs
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Reputation damage
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Regulatory and political issues
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Obsolescence
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Explanation:
Detailed explanation-1: -Answer and Explanation: The correct answer is c. Strategic risk. This is caused by improper decisions taken by a business that affect its goals and growth.
Detailed explanation-2: -Business risk can be defined as the risk associated with not being able to earn enough to pay off the business’s expenses. On the other hand, financial risk can be defined as the risk associated with not being able to pay off the debt the firm takes to create financial leverage.
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