2.05 Business Essentials

People who go into business know that the business may not succeed. This possibility is referred to as business

The general classifications of business risks are

A hurricane that destroys a business is an example of a(n) __________ risk.

A garden store customer tripped over a plant, fell, and sued the store for damages. This is an example of a(n) __________ risk.

A union strike that stops production at a manufacturing plant is a(n) __________ risk.

What category of business risk includes production problems and incompetent employees?

When a rival’s product on the market reduces sales of your company’s product, your company is experiencing strategic risk caused by

Financial loss from investing time and money to comply with accounting standards is an example of which strategic risk?

Which of the following is a pure business risk: Robbery, Obsolescence, Competition, Inflation

Which of the following is an example of a business risk that cannot be covered by insurance: Increase in interest rates, Goods lost in transit, Destruction of building by fire, Injury of employee on the job