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the greater the risk: the greater oppurtunty for reward or failure.
What Is Financial Risk?
A company's financial risk is predominantly targeted at its shareholders and those who own or buy the company's stocks as this type of risk is based on how a company's finances are structured, and traditionally focuses on corporate debt. Companies that rely heavily on business financing are often considered risky.
What Affects a Company's Business Risk?
There are several factors that can affect the business risk level of a company. The fluctuations in demand for a certain product or service can certainly affect business risk as this will have a direct impact on a company's profits. In addition, every time a competing company introduces a similar product to the market, it has the potential to drive down costs and sales, both of which can affect a company's earnings. Changes in business risk can also be attributed to external factors like government actions and changes in consumer preferences as well as internal factors like the company's ratio of fixed to variable expenditures.
Answer 2:
Operations and financial results of any business is riddled with uncertainties and risks which in turn can affect judgments of investors considerably. Market fluctuations is considered one of the major risk factors for businesses as it varies with the economic cycles. Market downturns could lead to decline in products' demand thereby affecting the profitability of a business. Fluctuations in foreign exchange and interest rates can have a great impact on the financial and business conditions of an organization. Natural disasters such as floods, earthquakes, typhoons, as well as accidents, terrorist acts, fatal infection, and many more can have a considerable impact on the profitability of any business. The competitive market is another risk factor that cannot be ignored. A business can experience ups and downs due to the presence of its several competitors in the competitive market.
Apart from these, there are several business risk factors that can affect a business. They include implementation of management strategies and structural measures, strategic alliance and corporate acquisition, global business activities, financing, dilution of stock, notes and additional financing, product quality, product sales, rapid technological advancement and other related issues, securing human resources, impairment loss on fixed assets, retirement benefit obligations, and many more. Any of these risks can adversely affect growth and profitability of a business.
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What of the features of business risk?
what is the features of variouse business risk
What does business risk mean?
business risk is when you take a risk when you dont know whether its right or wrong.
How do businesses manage political risk internationally?
First the business has to identify the risk, then they must measure the potential impact of the risk. That will give the business what they need to manage international political risk.
What risk do you take in operating your own business?
Money is a great risk.
How can the government lessen the risk of starting a business?
The government can lessen the risk of starting a business by giving small business owners tax breaks. They can also promote educational opportunities about good business practices.
Does business bankruptcy affect personal credit?
If your business is tied to your personal credit, then yes, you run the risk of being personally affected by the business's bankruptcy.
What is management is risk-taking management involving making the basic decisions that affect the future of the business?
entrepreneurial
Examine the concept of business risk and uncertainties and explain various business risk?
business risk is the risk ,a business face ,again the achieving of its objectives ,it can be of many types , like currency risk, political risk , industry specific risk , also financial risk that can also be business risk
The likelihood that a society will undergo political changes that negatively affect local business activity is called?
Political risk
What of the features of business risk?
what is the features of variouse business risk
Why would a global business conduct a risk analysis?
Whenever changing an existing status or planning on creating a new one, a business should conduct a risk analysis. Without a risk analysis the company has no way of knowing what the worst case scenario could be. A risk analysis highlights the "what can go wrong" and "how will it affect us".
What does business risk mean?
business risk is when you take a risk when you dont know whether its right or wrong.
What is the nature of entrepreneurship?
The nature of entrepreneurship is business risk. As define by many - entrepreneurship if the art, or system of organizing a business idea and venture, and assumes the risk that may affect the business venture in the future as it progresses. Entrepreneurs study the business, the market and create ideas to grab opportunities in developing and innovating a business. It involves critical thinking and perseverance to build the idea into a solid business aspect.
Financial risk of running a business?
financail risk of operating and opening a business
What is meant by business risk and why its important for the auditor to properly assess the risk?
Business risk means the amount of money and reputation that a business stands to lost. It is important for an auditor to assess the risk in order for the business to avoid heavy losses.
Define commercial risk?
Commercial risk is business risk. A business measures risk to determine if investments or projects are worth investing in before they do so.
What types of risk are involved in extending credit to business?
The risk of lending on character is called moral risk. Business risk involves lending on capacity. The risk of lending on capital is called property risk. An ideal business borrower will combine a minimum of each.
