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What is the relationship of business profits and risk assumption?
Wiki User
∙ 11y ago
mostv risk most profit
Wiki User
∙ 11y ago
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What is risk return relationship?
The risk return relationship is a business concept referring to the risk involved in exchange for the amount of return gained on an investment. These two factors are directly proportional to each other, meaning the more return sought, the higher the risk that is undertaken.
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
Why does a business want to make a profit?
Money is a gauge of value. The more value a business gives to it's customers, or the more customers it can add value to will increase it's profits. A business desires profits so that it can expand, develop new products, do market research to find what it's customers need, and to reward those who took the risk in investing in a business before the profits would be known. Profits can be used to build new buildings and hire new people. For many small businesses, the business owner is the last to get paid, and those profits represent their income. Many businesses are charitable and donate to local schools, scouting groups, and other charitable causes. If there is no profit, there are no incentives to be the best, to develop better products, and to better serve their customers.
What does society's capability mean economics?
Take initiative in combining the resources of land, labour & capital. Make strategic Business decision. Is an Innovator. Take risk to get more profits. Commercialization of Products. Gayathiri
What does a company strive to minimize?
Business risk
A risk taker in search of profits is known as?
I'd say your answer is: entrepreneur. Entrepreneur - someone who organizes a business venture and assumes the risk for it.
What is an entre peneur?
you mean Entrepreneur - the owner or manager of a business enterprise, who by risk and initiative, attempts to make profits
Elements of assumption of risk and defense?
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What is risk return relationship?
The risk return relationship is a business concept referring to the risk involved in exchange for the amount of return gained on an investment. These two factors are directly proportional to each other, meaning the more return sought, the higher the risk that is undertaken.
What is the relationship between economic turmoil and the risk of war?
economic turmoil is when their is not much profits from production. it can cause turmoil in the society and may lead to a civil war
In business what is the relationship between risk and profit?
The relationship between the two is that risk is needed to make a profit. A profit is money left over after expenses have been paid. To have expenses you need to take risks.
What word best describes a risk undertaking?
assumption
Relationship of risk management with other functions of business?
Some of the ways that risk management helps other functions of business is by protecting companies from:Risks if a third party fails to meet expectations.Problems with customers.Problems with resources.
Assumption of risk?
Technique of risk management (better known as retention or Self-Insurance) under which an individual or business firm assumes expected losses that are not catastrophic, but protects against catastrophic losses through the purchase of insurance. (Business Dictionary) For the source and more detailed information concerning your request, click on the related links section (Answers.com) indicated at the bottom of this answer box.
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
If you were a business would you take a risk doing illegal activity at the benefit of making huge profits to pay off fines or other costs?
It isn't smar for a business to take a risk doing illegal activity even if the benefit will be making huge profits to pay off fines of other costs. You not only risk loosing your company, gaining more fines, and even going to jail. It is better to lay off employees and take pay cuts, than it is to loose everything.
Which intermediary is the primary source of working capital for small business?
Actually, small businesses are such a risk that they have to use their savings in cojunction with their profits, because they too risky to get big loans.
