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A company can be at risk of running at a loss if there is a downturn in the economy. They will have to buy stock to be able to sell and if people are suffering the effects of higher costs of living the sales go down and the profits go down. A company can also take a risk setting up in a new area, unless they have done thorough investigation into that area's population and spending power. If an area has an earthquake or severe storm and flooding, a company could once again not be able to make profits because people, particularly those who weren't insured, could not afford to buy the product.

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What is the risk associated with this investment?

The risk associated with this investment is the possibility of losing money due to factors such as market fluctuations, economic conditions, or company performance.


Why is it important to analyze risk in a business?

It is extremely important for a business to analyse risk. This will assist in identifying factors that may cause interference in achieving the company goals.


What is financial and business risk?

Financial risk refers to the potential for loss due to factors affecting a company's financial health, such as market volatility, interest rate changes, or credit risks. Business risk, on the other hand, encompasses the uncertainties and potential losses associated with a company's operational decisions, market competition, and overall industry conditions. Both types of risk can impact a company's profitability and sustainability, necessitating effective risk management strategies to mitigate their effects.


What is the difference between internal and external factors?

In any Company there are Internal Factors affecting the company and External Factors affecting the company. Internal Factors are Management Descisions on what sort of business the company is in, quality of services or stock sold by the company. External Factors affecting the company include the Global Financial Crisis, government policies, and central bank interest rates.


How can I determine a company's credit rating?

You can determine a company's credit rating by looking at reports from credit rating agencies like Standard Poor's, Moody's, or Fitch. These agencies assess a company's financial health and assign a rating based on factors like its debt levels, profitability, and market position. A higher credit rating indicates lower risk of default, while a lower rating suggests higher risk.

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What is the risk associated with this investment?

The risk associated with this investment is the possibility of losing money due to factors such as market fluctuations, economic conditions, or company performance.


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What is a business risk?

investment in an entity with indicators that it is not able to return the investment A business risk is a circumstance or factor that may have a negative impact on the operation or profitability of a given company. Sometimes referred to as company risk, a business risk can be the result of internal conditions, as well as some external factors that may be evident in the wider business community. When it comes to outside factors that can create an element of business risk, one of the most predominant risks is that of a change in demand for the goods and services produced by the company. If the change is a positive one, and the demand for the offerings of the company increase, the amount of risk is decreased a great deal. However, if consumer demand for the offerings decreases, either due to loss of business to competitors or a change in general economic conditions, the amount of risk involved to investors will increase significantly. When a company's risk factor is considered to be increased due to outside factors that are beyond the control of the company to correct, chances of attracting new investors is severely limited.


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Do all disease have risk factors?

Yes, all diseases have risk factors.


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There are various health risk factors in smog having area. This is the example of health risk factors in a sentence.