What is the concept of business risk? Di | Class 11 Business Studies Chapter Business, Trade and Commerce, Business, Trade and Commerce NCERT Solutions

Question:

What is the concept of business risk? Discuss its causes and types.

Answer:

Concept: Business risk is the likelihood of facing losses or lower profits due to uncertainties in the business environment. Causes:

Natural Causes: Events like earthquakes, floods, or droughts.
Economic Causes: Fluctuations in demand and supply, inflation, or recession.
Human Causes: Employee errors, strikes, or management inefficiencies.
Political Causes: Changes in laws, regulations, or instability in governance. Types:
Speculative Risks: Involves gain or loss (e.g., stock trading).
Pure Risks: Only result in loss, such as theft or natural disasters.

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NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Business, Trade and Commerce.
Review previous year question papers to get an idea of how such questions may be framed in exams.
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Welcome to the NCERT Solutions for Class 11 Business Studies - Chapter . This page offers a step-by-step solution to the specific question from Extra Questions, Question 7: What is the concept of business risk? Discuss its causes and types.....

What is the concept of business risk? Di | Class 11 Business Studies Chapter Business, Trade and Commerce, Business, Trade and Commerce NCERT Solutions

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